Disney Sees Profit, Revenue Boost in Q2

BURBANK: The Walt Disney Company boosted its second-quarter profits by 52.8 percent in the second quarter to $998 million, thanks in large part to its film division, on revenues that were 6 percent higher at $8.6 billion.

“The incredible box office performance of Disney’s Alice in Wonderland and acquisition of Marvel, whose Iron Man 2 has grossed $334 million in global box office in its first two weeks, clearly show the benefits of investing in high quality branded content,” said Robert A. Iger, president and CEO of The Walt Disney Company. “With the economy showing signs of improvement, we’re confident our strategy is the right one to provide consumers the best in entertainment while building long-term value for our shareholders.”

The media networks delivered revenues of $3.8 billion, a 6 percent increase, while operating income was flat at $1.3 billion. The cable networks led the division’s gains, with revenues up 9 percent to $2.4 billion and 3-percent operating income increase to $1.2 billion. ESPN reported higher affiliate revenues and, to a lesser extent, increased ad revenues, but did experience greater program costs, as a result of its investment in football rights in the U.K. as well as higher contractual costs for college basketball and NBA programming. At the worldwide Disney Channels, higher affiliate and advertising revenues were offset by higher programming costs and sales and distribution expenses. The broadcasting segment, meanwhile, maintained revenues at $1.4 billion but operating income was down 24 percent to $123 million as a result of lower ad revenues at ABC and higher programming costs for the prime-time schedule. There were, however, higher advertising revenues at the owned television stations.

In the studio entertainment segment, revenues were up by 7 percent to $1.5 billion while operating income soared from $13 million to $223 million, boosted by the worldwide theatrical revenues from Alice in Wonderland.

Parks and resorts revenues increased to $2.4 billion but segment operating income was down by 12 percent to $150 million. Consumer products was up by 20 percent to $596 million and segment operating income increased 37 percent to $133 million. Interactive media revenues also increased 20 percent, to $155 million, and the segment narrowed its loss from $61 million to $55 million