Disney Post Gains in Third Quarter

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Walt Disney Co. reported gains in revenues and profits on Wednesday as well as the purchase of a children-focused Web site.


Disney reported third quarter net income of $1.2 billion (57 cents per share), a 5 percent gain from $1.1 billion (53 cents) from the same period a year earlier, beating analysts’ expectations of 55 cents per share, according to a poll conducted by Thomson Financial.


The Burbank-based entertainment company also reported a 7 percent gain in quarterly revenue to $9.1 billion, beating Wall Street’s projections of $9 billion.


Disney also said Wednesday that it has it acquired children’s Web site Club Penguin for $350 million with the possibility of paying an additional $350 million by the end of 2009, depending on the site’s performance, the company said.


The founders of the British Columbia-based Web site, Lane Merrifield, Dave Krysko and Lance Priebe, will stay with the site, Disney said. The virtual world of penguin avatars was started in October 2005 and now boasts 700,000 paid subscribers.


Shares in Disney closed up 83 cents, or 2.5 percent, to $33.83 but lost 55 cents, or 1.6 percent, to $33.28 in after-hours trading Wednesday on the New York Stock Exchange.

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