Disney reports increased revenue, solid growth in all segments
Walt Disney Co.'s profit was up in its third quarter due to the strong box office performance by "Cars," strong sales of "The Chronicles of Narnia" DVD and revenue from ESPN, CEO Bob Iger said on Wednesday.
Revenue increased 12 percent, from $7.5 billion in 2005 to $8.6 billion this year, and earnings per share jumped 36 percent to 53 cents compared with 39 cents a year ago. Profits rose to $1.13 billion compared with $811 million in the year-ago third quarter.
"By investing in our pre-eminent core brands and adopting new platforms to enhance the entertainment experience, we intend to deliver our content to more people, more often, in more places and thereby also deliver long-term growth to our shareholders," Iger said in a statement.
The company's theme park business is expected to be flat for the rest of the year when compared with last year, which marked record attendance in its worldwide resorts that were celebrating the 50th anniversary opening of Disneyland in California.
In a conference call early Wednesday, Tom Staggs, Disney's chief financial officer, said fourth-quarter room reservations in the U.S. are running ahead by a high single-digit percentage rate compared with 2005, but that Disney expects its Florida and California theme park attendance to be flat.
Burbank, Calif.-based Walt Disney Co. (NYSE: DIS) operates Walt Disney Parks & Resorts, which includes the Magic Kingdom, Epcot, Animal Kingdom and Disney-MGM Studios theme parks in Orlando; owns ABC television network, 10 broadcast stations and more than 60 radio stations; and produces films through Walt Disney Studios.