Walt Disney quarterly profit soars 32%

PanARMENIAN.Net - Walt Disney said Tuesday, May 7 its quarterly profit soared 32% on improving movie studio finances, higher advertising rates at ESPN and longer stays at its theme park resorts, USA Today reported.

The Burbank, Calif.-based media giant said Tuesday its net income for the fiscal second quarter rose 32% from a year ago to $1.51 billion as customer demand grew for nearly all of its various business lines.

Earnings per share for the quarter were 83 cents for the three months ending March 30 vs. 63 cents in the year-ago period. Its adjusted earnings per share of 79 cents — up 36%, excluding special items — beat Wall Street expectations of 77 cents, according to Thomson Reuters.

Revenue for the quarter rose 10% to $10.55 billion.

"Our results reflect our successful strategy, the strength of our brands and the value of our high-quality creative content," CEO Robert Iger said in a statement.

All of Disney's operating units, except Interactive, reported year-over-year profit gains. But the Interactive unit, which runs gaming and digital properties, did see its operating loss narrow 23% to $54 million on revenue of $194 million. Disney said Monday that it has agreed to develop new Star Wars video games with Electronic Arts.

Disney's theme parks and resorts unit reported the biggest profit growth. With tourists staying more nights at its Disney resorts and the addition of the Disney Fantasy cruise ship, which launched in March 2012, the unit's profit rose 73% to $383 million. A jump in prices for food and drinks and entrance tickets also pushed average guest spending higher, resulting in a 14% increase in the unit's revenue to $3.3 billion.

Disney's cable and broadcast networks — including ABC and ESPN — remain its largest revenue generators. The unit's earnings were up 8% to $1.86 billion, as revenue rose 6% to $4.96 billion.

Advertising-rate increases at ESPN helped offset a 40% drop in the operating income of its broadcasting business, which includes ABC. Higher prime-time programming costs and a drop in advertising revenue at ABC contributed to the decline.

Disney's movie studio business returned to profitability on the strong performance of recently released movies Oz the Great and Powerful and Wreck-it Ralph.

The studio's tidings of good fortune could continue into the second quarter. Iron Man 3, from Disney's Marvel Studios, grossed $174.1 million in the U.S. in its first weekend of release. The movie, starring Robert Downey Jr., has brought in $678.9 million worldwide in just 10 days, according to Hollywood.com.

Last year's big-name release — John Carter, a sci-fi movie set on Mars — lost $200 million and cost then-studio chief Rich Ross his job.