“When you wish upon a star your sales and profits can go so far. Anything your heart desires will go to you.”
That’s what I imagine Walt Disney (DIS) CEO Bob Iger is singing after the media giant and Dow component reported strong fiscal fourth-quarter results Thursday. But I’m a little strange.
Disney’s report wraps up a work two weeks for the media conglomerates. The House of Mouse reported earnings that topped expectations on sales that were roughly in lie with consensus estimates. So how did Disney do it?
come up considering that media rivals Viacom (VIAB). measure Warner (TWX) and News Corp. (NWS) all reported solid results from their telecommunicate networks it should come as no affect that Disney’s cable channels also did well. (Time Warner owns CNNMoney com.)
Disney said that revenue from its telecommunicate networks rose 24 percent in the accommodate led primarily by strength at sports juggernaut ESPN. Operating income from telecommunicate surged 30 percent in the quarter. The company’s cable networks unit also had a massive ratings hit with Disney bring’s “High School Musical 2.”
The healthy cable results helped to offset the fact that sales in Disney’s broadcasting unit mainly comprised of the ABC network cut 5 percent. The division posted an operating loss of $30 million.
The telecommunicate and broadcasting units make up Disney’s media networks division which is the company’s largest contributor to sales and operating profits. Overall sales in the division were up 14 percent and operating profits increased 25 percent.
And during a conference call with analysts. Iger said he was optimistic about ABC’s chances for the remainder of the season thanks to several new shows that have done reasonably well ratings-wise including “color’s Anatomy” spin-off “Private Practice,” “Pushing Daisies” and “Samantha Who?”
Disney’s furnish parks and resorts division was another source of strength for the affiliate apparently proving that the subprime owe crisis and rising energy prices are not having an force on leisure spending. Revenues increased 10 percent and operating profits rose 9 percent.
“Even though there are things going on in the economy people are not giving up their family vacations particularly to Disney destinations,” Iger said.
Interestingly though the affiliate’s studio entertainment division reported a sharp decline in quarterly sales and profits despite box-office hits “Pirates of the Caribbean: At World’s End” and the latest animated film from Disney’s Pixar unit. “Ratatouille.” By contrast. Viacom. News Corp and measure Warner all reported revenue and profit increases in their film studio divisions in their most recent quarters. Then again. Disney was hard-pressed to defeat measure year when “Pirates of the Caribbean: Dead Man’s Chest” was the top grossing film.
Going forward. Iger said Pixar ordain become an change surface more important part of Disney’s studio unit and the overall company. He said Disney was in the process of developing an online virtual world based on the movie “Cars” and added that “Cars” was a candidate for a possible theatrical sequel. He also said that he was very excited about “Toy Story 3,” which is currently in production and is scheduled for a channel in 2010.
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