http://www.broadcastingcable.com/news/currency/disney-reports-record-third-quarter-earnings/143076
Disney Reports Record Third-Quarter Earnings
The Walt Disney Co. reported record earnings for the third quarter, with its TV
networks contributing positive results.
Net income rose 11% to $2.5 billion, or $1.45 a share, from $2.2 billion, or
$1.28 a share.
Revenues rose 5% to $13.1 billion.
The earnings exceeded Wall Street forecasts, while revenues were a hair less
than expected.
Operating income was up 4% to $2.4 billion at the company's media networks.
Revenue was up 5% to $5.8 billion.
But at ESPN, ad revenue was down because of comparisons to the ratings and ad
rates generated by the World Cup a year ago. The number of subscribers was down
at some ESPN networks, but the decline was offset by increases at ESPN’s SEC
Network.
ESPN has reportedly begun cutting costs in reaction to falling subscriber
totals and a tough ad market.
Operating income for broadcast—including ABC—decreased 15% to $300 million.
Programming costs were up and advertising revenue was down.
Disney’s studio unit reported a 15% increase in operating income and its
consumer products division was up 27%. Parks and resorts rose 9%.
"We're very pleased with our performance in the third quarter, with record net
income and diluted earnings per share of $1.45, up 13% from the prior year,"
said CEO Bob Iger. "The strong results across our many diverse lines of
business demonstrate the power of our unparalleled brands, franchises and
creative content."
Regards
Craig
