Ad Sales Boost Disney’s First Quarter

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Walt Disney Co. reported a 54 jump in fiscal first quarter profit, as the media giant benefited from better ad sales at its ESPN cable channels and strong “Toy Story 3” video and toy sales.

After the Tuesday markets closed, the Burbank entertainment conglomerate reported net income of $1.3 billion (68 cents per share), compared with $844 million (44 cents) a year earlier. Revenue rose 10 percent to $10.7 billion.

The most-recent quarter included a gain of $75 million, mostly from the sale of its Miramax film studio, which was offset by $12 million in restructuring and impairment charges. Analysts surveyed by Thomson Reuters on average expected per-share profit of 56 cents on revenue $10.5 billion.

Revenue from its media networks unit was up 11 percent to $4.6 billion, with operating income jumping 47 percent to $1 billion. Revenue from its sports and other cable networks was the strongest, up 16 percent, with broadcast revenue up 4 percent.

Parks-and-resorts revenue rose 7.7 percent to $2.9 billion, with profit up roughly 25 percent to $468 million. Revenue growth from its studio entertainment unit was flat at $1.9 billion, but income rose 54 percent to $375 million as the company benefited worldwide sales of “Toy Story 3” DVDs and lower film cost write-downs.

The consumer products division, boosted by “Toy Story” toy sales during the holidays, saw 24 revenue growth to $922 million and 28 percent income gain to $312 million. The company’s recently restructured interactive division had a loss of $13 million, despite a 58 revenue increase to $349 million.

“We had an excellent first quarter, driven by strong creative content and our unique ability to leverage great entertainment across the many platforms, businesses and markets in which we operate,” said Chief Executive Robert Iger in a statement.

Shares earlier closed up 23 cents, or less than 1 percent, to $41.17 on the New York Stock Exchange and gained 3.8 percent in after-hours trading.

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