Disney Profit Up 12 Percent

BURBANK: Net income grew 12 percent at The Walt Disney Company for its first fiscal quarter ended December 31, 2011, while revenues were relatively flat, with a 1-percent gain.

Revenues stood at $10.8 billion, an increase of 1 percent on the prior year’s period. Net income rose to nearly $1.5 billion, a gain of 12 percent.

Media Networks revenues increased 3 percent to $4.8 billion, with segment operating income up 12 percent to $1.2 billion. Operating income for Cable Networks was up 25 percent $967 million for the quarter, due in part to growth at ESPN as well as the worldwide Disney Channels. For Broadcasting, however, operating income was down 23 percent to $226 million. The was attributed to lower political advertising revenues and higher marketing costs; the figures were partially offset by lower programming and production costs with the absence of The Oprah Winfrey Show. Revenues were up 8 percent for Cable Networks and down 7 percent for Broadcasting.

Studio Entertainment revenues fell 16 percent, with segment operating income up 10 percent. Parks and Resorts posted a 10-percent gain in revenues and an 18-percent increase in operating income.

“We’re off to a good start in this fiscal year executing on our ongoing strategy, deriving greater value from our brands—Disney, Pixar, Marvel, ESPN and ABC—in the U.S. and around the globe,” said Disney’s president and CEO, Robert A. Iger. “We are confident that our commitment to creating and providing exceptional family entertainment on multiple platforms continues to position us to deliver long-term shareholder value.”