Walt Disney Co. shares gained in after-hours trading Wednesday after the Burbank entertainment giant said its first quarter earnings more than doubled, thanks to strong DVD sales and profits from the sale of assets.
Disney reported net income of $1.7 billion (79 cents per share), up more than 131 percent from the same period a year earlier. The jump in profit included a $1.1 billion gain from the sale of Disney's stake in E! Entertainment Television and US Weekly, adding 29 cents per share.
Disney also said that sales climbed 9.8 percent to $9.73 billion, beating analysts' estimates of $9.53 billion, according to Thompson Financial. The jump was mainly thanks to DVD sales more than quadrupling for the quarter, thanks to blockbuster titles such as "Pirates of the Caribbean: Dead Man's Chest" and "Cars."
Income from Disney's broadcasting unit also jumped 27 percent, helped mainly by strong ad sales at the company's ABC network, which has benefited from hits such as "Grey's Anatomy" and "Lost."
The network's cable operations, which include ESPN, posted a 12 percent gain in revenue and a 22 percent jump in profit.
Disney's parks and resorts saw a 4 percent rise in revenue to $2.5 billion, which was mainly driven by strong attendance at its Orlando-based Walt Disney World, countered by declines at Hong Kong's Disneyland and the Disneyland Resort in California.
Shares in Disney closed up 29 cents Wednesday at $35.48 and added another 73 cents to reach $36.20 in after-hours trading.
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