DVDs, parks increase Disney profits

AFP
Walt Disney Co. said that its second quarter profit rose 30 per cent from a year earlier, lifted by an improving picture at its television networks and theme parks.

Disney said net income rose to $698 million, or 33 cents a share, in the second fiscal quarter ended April 2. That topped Wall Street forecasts of a profit of 32 cents. Revenue rose nine per cent to $7.83 million.

"It is very gratifying to see our company continue to achieve impressive growth," said chief executive Michael Eisner, who is stepping down later this year.

"The second quarter's strong results are the latest demonstration that, across the company, our management team continues to effectively execute on its strategic plans. As we anticipated, last year's tremendous momentum has continued into 2005, bringing us well on the way toward another year of double-digit earnings growth for our shareholders."

Television network revenue rose six per cent to $three billion, with operating earnings in the division up three per cent to $725 million, paced by higher advertising revenue at the ABC television network. After finishing fourth in the Nielsen ratings in the 2003-04 season, ABC has ridden a handful of shows to sudden success, including Desperate Housewives, Lost and Grey's Anatomy.

The unit's revenue increase also reflects better ad sales and higher fees from cable and satellite operators at the cable powerhouse ESPN.

Theme parks revenue soared 26 per cent to $2.10 billion, as increased guest spending and hotel occupancy at Walt Disney World and the consolidation of Euro Disney and Hong Kong Disneyland drove the improvement.