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Disney 2nd-Qtr Net Rises 30 Percent on `Incredibles' (Update3)
May 11 (Bloomberg) -- Walt Disney Co., the second-largest U.S. media company, said second-quarter profit rose 30 percent, boosted by home-video sales of ``The Incredibles.''
Net income rose to $698 million, or 33 cents a share, compared with $537 million, or 26 cents, a year earlier, the Burbank, California-based company said today in a statement. Revenue rose 8.9 percent to $7.83 billion in the quarter ended April 2.
Sales of ``The Incredibles,'' the best-selling digital video disc this year, helped boost profit 65 percent at Disney's film division. The results, the first since President Robert Iger was named in March to replace Michael Eisner as chief executive officer, were helped by higher prices and more hotel guests at the Walt Disney World theme park in Florida.
```The Incredibles' was what drove this quarter,'' Vijay Jayant, an analyst at Lehman Brothers in New York who rates the shares ``equalweight/neutral'' and doesn't own them, said.
Excluding a 2 cent gain for restructuring Euro Disney SCA debt and a 1 cent cost for writing down an investment in its MovieBeam video on demand venture, profit was 32 cents a share. Analysts surveyed by Thompson Financial estimated profit of 32 cents a share. Analysts expected sales of $7.81 billion.
Disney released earnings ahead of schedule today because an internal communication went out early, Disney spokeswoman Zenia Mucha said. The shares fell 28 cents to $26.67 at 4 p.m. in New York Stock Exchange composite trading after earlier being halted because of the early release. The shares have increased 16 percent in the last 12 months.
Of the 22 analysts who follow Disney, 13 rate the company a ``buy,'' eight a ``hold'' and one says ``sell.''
`Incredibles'
Operating income at Disney's studio unit, which includes Walt Disney Studios and Miramax Films, rose to $253 million from $153 million. Revenue rose 5 percent to $2.26 billion.
``The Incredibles,'' released March 15, has sold about 23.4 million copies. The film, created by Emeryville, California-based Pixar and co-financed and distributed by Disney, was 2004's fifth- highest-grossing film with $261.4 million in domestic ticket sales.
Home-video sales of the movie boosted profit more than threefold to $81.9 million at Pixar last quarter. Box-office success doesn't guarantee sustained DVD sales. DreamWorks Animation SKG Inc. yesterday missed profit forecasts as sales of ``Shrek 2,'' the best-selling DVD last year, fell short of the company's expectations in the first quarter.
Parks and resorts had the biggest percentage sales increase among the Disney divisions, with revenue rising 26 percent to $2.1 billion. Operating income at the unit, which includes Disneyland in California and Walt Disney World in Florida, rose 3 percent to $193 million.
Television
Operating income at Disney's media networks unit, which includes the ESPN cable sports network and the ABC broadcast network, rose 3 percent to $725 million. Revenue rose 6 percent to $3.01 billion.
Profit at Disney's cable channels, including ESPN, ABC Family and Disney Channel, dropped 1 percent to $671 million because the sports channel deferred $111 million in revenue until some sports programming commitments are fulfilled. The company said that revenue would probably be recognized in the fiscal fourth quarter.
Fees from cable-television systems increased at ESPN and advertising revenue rose at the sports network and ABC Family, the company said.
Operating profit at the broadcasting business rose 93 percent to $54 million.
(Disney will hold a conference call at 4:30 p.m. EDT at (1)(800) 473-6123 or http://www.disney.com/investors . A re-play can be heard at (1)(877) 519-4471 or (1)(973) 341-3080 for international callers with code #5958293. Disney's earnings conference call also can be heard at 4:30 p.m. New York time on {LIVE <GO>}. An interview with Disney's Robert Iger can be heard at 5:45 p.m. on {LIVE <GO>}.)
This probably isn't good for Roy Disney who is trying to sue over poor performance and CEO selection.
Disney 2nd-Qtr Net Rises 30 Percent on `Incredibles' (Update3)
May 11 (Bloomberg) -- Walt Disney Co., the second-largest U.S. media company, said second-quarter profit rose 30 percent, boosted by home-video sales of ``The Incredibles.''
Net income rose to $698 million, or 33 cents a share, compared with $537 million, or 26 cents, a year earlier, the Burbank, California-based company said today in a statement. Revenue rose 8.9 percent to $7.83 billion in the quarter ended April 2.
Sales of ``The Incredibles,'' the best-selling digital video disc this year, helped boost profit 65 percent at Disney's film division. The results, the first since President Robert Iger was named in March to replace Michael Eisner as chief executive officer, were helped by higher prices and more hotel guests at the Walt Disney World theme park in Florida.
```The Incredibles' was what drove this quarter,'' Vijay Jayant, an analyst at Lehman Brothers in New York who rates the shares ``equalweight/neutral'' and doesn't own them, said.
Excluding a 2 cent gain for restructuring Euro Disney SCA debt and a 1 cent cost for writing down an investment in its MovieBeam video on demand venture, profit was 32 cents a share. Analysts surveyed by Thompson Financial estimated profit of 32 cents a share. Analysts expected sales of $7.81 billion.
Disney released earnings ahead of schedule today because an internal communication went out early, Disney spokeswoman Zenia Mucha said. The shares fell 28 cents to $26.67 at 4 p.m. in New York Stock Exchange composite trading after earlier being halted because of the early release. The shares have increased 16 percent in the last 12 months.
Of the 22 analysts who follow Disney, 13 rate the company a ``buy,'' eight a ``hold'' and one says ``sell.''
`Incredibles'
Operating income at Disney's studio unit, which includes Walt Disney Studios and Miramax Films, rose to $253 million from $153 million. Revenue rose 5 percent to $2.26 billion.
``The Incredibles,'' released March 15, has sold about 23.4 million copies. The film, created by Emeryville, California-based Pixar and co-financed and distributed by Disney, was 2004's fifth- highest-grossing film with $261.4 million in domestic ticket sales.
Home-video sales of the movie boosted profit more than threefold to $81.9 million at Pixar last quarter. Box-office success doesn't guarantee sustained DVD sales. DreamWorks Animation SKG Inc. yesterday missed profit forecasts as sales of ``Shrek 2,'' the best-selling DVD last year, fell short of the company's expectations in the first quarter.
Parks and resorts had the biggest percentage sales increase among the Disney divisions, with revenue rising 26 percent to $2.1 billion. Operating income at the unit, which includes Disneyland in California and Walt Disney World in Florida, rose 3 percent to $193 million.
Television
Operating income at Disney's media networks unit, which includes the ESPN cable sports network and the ABC broadcast network, rose 3 percent to $725 million. Revenue rose 6 percent to $3.01 billion.
Profit at Disney's cable channels, including ESPN, ABC Family and Disney Channel, dropped 1 percent to $671 million because the sports channel deferred $111 million in revenue until some sports programming commitments are fulfilled. The company said that revenue would probably be recognized in the fiscal fourth quarter.
Fees from cable-television systems increased at ESPN and advertising revenue rose at the sports network and ABC Family, the company said.
Operating profit at the broadcasting business rose 93 percent to $54 million.
(Disney will hold a conference call at 4:30 p.m. EDT at (1)(800) 473-6123 or http://www.disney.com/investors . A re-play can be heard at (1)(877) 519-4471 or (1)(973) 341-3080 for international callers with code #5958293. Disney's earnings conference call also can be heard at 4:30 p.m. New York time on {LIVE <GO>}. An interview with Disney's Robert Iger can be heard at 5:45 p.m. on {LIVE <GO>}.)
This probably isn't good for Roy Disney who is trying to sue over poor performance and CEO selection.
