Q4 Profits Rise at Disney

November 13, 2009 World Screen

BURBANK: Fourth-quarter profit at The Walt Disney Company increased by 18 percent to $895 million, while revenues rose by 4 percent to $9.9 billion.

 
The Q4 profit boost was attributed to gains from the merger of Lifetime and AETN and the sale of investments in two Latin American pay-TV services.
 
“Although last year was a difficult one due in part to the weak global economy, I’m pleased with the way our businesses have responded to the downturn,” said Robert A. Iger, the company’s president and CEO. “We’ve stayed focused on our long-term strategy, efficiently managed costs, and continued to invest in initiatives to deliver future growth. We also have adapted our organization to respond to and take advantage of the changes taking place in our businesses and will continue to do so as we position Disney to thrive for years to come.”
 
For the full fiscal year, Disney reported that its revenues were down by 4 percent to $36.1 billion, with a net income of $3.3 billion, a 25-percent reduction on the year-ago period.
 
The Media Networks remained a bright spot for the company, with full-year revenues up by 2 percent to $16.2 billion and Q4 revenues increasing 14 percent to $4.7 billion. Operating income for the division rose by 26 percent in the quarter to $1.5 billion, but was down by 4 percent in the year to $4.8 billion. In this segment, the cable networks were the main drivers, notably ESPN and ABC Family. Quarterly revenues rose by 14 percent to $3.3 billion, with an operating income that increase 19 percent to $1.5 billion. For the year, operating income was $4.3 billion, on revenues of $10.5 billion. In the broadcasting division, meanwhile, quarterly revenues rose 14 percent to $1.4 billion but full-year revenues fell 3 percent to $5.6 billion. The segment emerged from the Q4 2008 loss to record a $2 million profit, thanks to increased U.S. and international licensing revenues from ABC Studios productions, while profit for the fiscal year dropped 40 percent to $842 million.
 
Studio Entertainment revenues for the year were down by 16 percent to $6.1 billion and segment operating income decreased 84 percent to $175 million. For the quarter, revenues were up by 3 percent to $1.5 billion but the segment recorded a loss of $13 million.
 
Consumer Products revenues were stable in the year at $2.4 billion, but operating income dropped 22 percent to $609 million. For the quarter, revenues fell 12 percent to $646 million, and segment operating income decreased 28 percent to $151 million.
 
Parks and Resorts revenues for the year decreased 7 percent to $10.7 billion and segment operating income decreased 25 percent to $1.4 billion. For the quarter, revenues decreased 4 percent to $2.8 billion and segment operating income decreased 17 percent to $344 million.