By Ronald Grover - Nov 11, 2011 5:01 AM GMT+0700
Nov. 10 (Bloomberg) -- Walt Disney Co. Chief Executive Officer Robert Iger talks about the international expansion of the company's theme parks, the performance of its film and television units, and the legacy of Apple Inc. co-founder Steve Jobs. Iger speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)
Nov. 10 (Bloomberg) -- Matthew Harrigan, an analyst at Wunderlich Securities, talks about Walt Disney Co.'s four-quarter profit. The world’s biggest theme-park operator and owner of ESPN posted earnings that beat analysts’ estimates on growth in cable TV and at U.S. resorts. Harrigan speaks with Adam Johnson and Jon Erlichman on Bloomberg Television's "Street Smart." (Source: Bloomberg)
Walt Disney Co. (DIS), the world’s biggest theme-park operator and owner of ESPN, posted a 30 percent gain fourth-quarter profit, beating analysts’ estimates on growth in cable TV and at U.S. resorts.
Excluding items, profit totaled 59 cents, Burbank, California-based Disney said today in a statement. That exceeded analysts’ projections of 55 cents, the average of 26 estimates compiled by Bloomberg. Sales grew 7 percent to $10.4 billion in the period ended Oct. 1, meeting estimates.
Higher fees from pay-TV operators, advertising gains and improved results at resorts drove revenue and profit higher. Audience ratings for ESPN increased 13 percent in the quarter, according to Nielsen data provided by Barclays Capital. Disney resorts benefited from higher ticket prices and a new ship.
Advertising has “slowed a bit the last few weeks across the board,” Chief Executive Officer Robert Iger said in a CNBC interview. Marketers are picking up options to spend at ABC in the first quarter. “We generally feel good about what’s ahead,” Iger said.
Disney rose 3 percent to $35.68 in extended trading after the results. They advanced 2.5 percent to $34.64 at the close in New York and have declined 7.7 percent this year.
Net income rose 30 percent to $1.09 billion, or 58 cents a share, from $835 million, or 43 cents, a year ago, Disney said.
Profit from cable networks advanced 18 percent to $1.26 billion on an 11 percent gain in revenue to $3.47 billion. The gains reflected growth in sales of Disney Channel programming, higher fees from pay-TV companies and higher ad sales.
ABC Profit
Profit at ABC broadcasting advanced 37 percent to $201 million on a 4 percent rise in revenue. ABC enjoyed higher network ad sales and a drop in programming and production costs, Disney said.
The theme parks boosted profit by 33 percent to $421 million, as revenue jumped 11 percent to $3.13 billion. Disney credited a rise in ticket prices and guest spending, including higher room rates. Cruise profit rose after the Disney Dream entered service with its maiden voyage in January, becoming the third ship in the company’s fleet.
Film studio profit rose 13 percent to $117 million on 8 percent lower revenue. The company reissued the 1994 hit “The Lion King” in 3-D, generating $93.4 million in ticket sales after its Sept. 16 release, according to Box Office Mojo. That helped counter the performance of Pixar’s “Car 2,” which failed to match the year ago revenue from “Toy Story 3.”
Disney’s consumer products unit posted a 12 percent gain in revenue to $816 million, while profit increased 13 percent to $207 million, the result of “Cars” and Marvel merchandise.
The loss in interactive narrowed to $94 million from $104 million, while revenue increased 19 percent to $223 million, Disney said. The company reduced marketing outlays and product development spending for console-based games.
To contact the reporter on this story: Ronald Grover in Los Angeles at rgrover5@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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