Third Quarter Sees Profit Gains at Disney

BURBANK, July 31: Net
income at The Walt Disney Company increased by 9 percent for the third quarter
to $1.3 billion on revenues of $9.2 billion, which were up just 2 percent on
the same period last year.

Robert Iger, the president
and CEO of Disney, referred to the period as a “solid quarter…further
illustrating our creative momentum, the competitive strength of our brands and
our ability to cohesively manage a great collection of assets to maximize
shareholder value.”

The company reported a
diluted earnings per share of $0.66, reflecting a 16-percent increase, boosted
by gains from the acquisition of the Disney Stores in North America and the
sale of movies.com.

At the Media Networks
division, revenues were up 8 percent to $4.1 billion, while segment profit
gained 9 percent to $1.5 billion. Gains were driven by the cable networks,
where revenues rose 12 percent to $2.6 billion, driving an 14-percent profit
hike to $1.2 billion. Among the portfolio of cable offerings, ESPN was a
particularly strong performer. In the broadcasting segment, meanwhile, revenues
were stable at $1.5 billion, but operating income was down 11 percent to $260
million.

Studio Entertainment did
not fare as well, with revenues dropping 19 percent to $1.4 billion and profit
plunging 49 percent to $97 million. The company cited difficult comparisons to
the year-ago period, which included Pirates of the Caribbean: At World’s End.

Consumer Products reported
a 20-percent increase in revenues to $642 million, but the segment still
reported a 4-percent decline in operating income to $113 million.

At Parks and Resorts,
revenues were up 5 percent to $3 billion, and operating income rose 3 percent
to $641 million.

—By Mansha Daswani