Blockbusters Fuel Disney Q3

Cable networks grow revenue 3%, operating income up 1%

By Mike Farrell, Multichannel News -- Broadcasting & Cable, 8/7/2012 5:17:45 PM

Walt Disney Co. reported a strong fiscal third quarter, fueled by blockbuster films like The Avengers.
Overall revenue rose 4% to $11.1 billion, segment operating income grew 18% to 3.2 billion and net income was up a strong 24% to $1.8 billion in the period. Almost all of that growth was driven by its movie studio, which reported a six-fold increase in operating income to $313 million while revenue remained flat at $1.6 billion.

At its media networks, revenue increased 3% to $.1 billion and segment operating income was up 2% to $2.1 billion. At its cable networks, including sports juggernaut ESPN, revenue rose 3% to $3.6 billion but segment operating income was up just 1% to $1.9 billion. At its networks division -- including the ABC broadcast network and its owned and operated television stations --revenue increased 3% and segment operating income rose 7% to $268 million.

In a statement, Disney said strong revenue gains at its Disney Channels were offset by a decline at ESPN, driven by lower recognition of deferred affiliate fees related to annual programming commitments.

"We had a phenomenal third quarter, delivering the largest quarterly earnings in the history of our company," said Disney chairman and CEO Robert Iger in a statement. "Earnings per share were up 31% over last year, driven by growth in every one of our businesses. We also delivered record earnings per share for the first nine months of our fiscal year, and we believe our results clearly demonstrate Disney's unique value proposition and great potential to deliver long-term growth."