Strong Gains for Disney in Q3

BURBANK: Led by its cable networks and theatrical divisions, The Walt Disney Company increased its net profit by 40 percent in the third quarter to $1.3 billion, on revenues that rose 16 percent to $10 billion.

“We’re very pleased with our strong third quarter, in which we grew revenues substantially and improved profitability across the majority of our businesses,” said Robert A. Iger, president and CEO. “Our performance underscores the value of sticking to a smart strategy even in tough times, of investing in the right people, and of focusing relentlessly on quality and innovation to drive growth in shareholder value.”

Revenues at in the Media Networks segment were up by 19 percent to $4.7 billion, delivering an operating income of $1.9 billion, a 43-percent gain. The cable networks contributed revenues of $3.3 billion, 28-percent higher than last year, with an operating income that increased by 50 percent to $1.7 billion, led by increases at ESPN and the worldwide Disney Channels. Operating income at the broadcasting segment rose just 2 percent to $209 million, on revenues that inched up 4 percent to $1.4 billion.

Studio Entertainment revenues saw a 30-percent boost to $1.6 billion. The division recovered from last year’s $12 million loss to deliver an operating income of $123 million. Key releases included Toy Story 3 and Alice in Wonderland.

Parks and Resorts revenues gained 3 percent to $2.8 billion, but operating income fell by 8 percent to $477 million. Consumer Products had a stronger quarter, with revenues up 19 percent to $606 million and operating income up 22 percent to $117 million. And in the Interactive Media segment, revenues gained 74 percent to $197 million, narrowing the division’s loss from $75 million to $65 million.