Walt Disney Co. reported an increase in second quarter
profits thanks to gains by its television properties and theme parks.
Net income rose 21% to $1.14 billion, or 63 cents a share,
from $942 million, or 49 cents a share, a year ago. Gains related to the
acquisition of UTV Software, restructuring and impairment charges together
contributed 5 cents to Disney's second-quarter earnings.
Revenues rose 6% to $9.6 billion.
"With 18% adjusted growth in earnings per share, we're
pleased with our second quarter performance," Bob Iger, Disney chairman and CEO,
said in a statement. "We're incredibly
optimistic about our future, given the strength of our core brands, Disney,
Pixar, Marvel, ESPN and ABC, and our extraordinary ability to grow franchises
across our businesses."
Disney's media networks unit had operating income of $1.7
billion, up 13% from a year ago. Revenues rose 9% to $4.7 billion.
Operating income for Disney's cable networks, including
ESPN, rose 11% to $1.5 billion as revenues grew 2% to $3.17 billion. ESPN had
in increase in operating income because of higher affiliate and advertising
revenues. It also had higher programming and production costs. Ad revenues were
higher because of the timing of the Rose Bowl, Fiesta Bowl and some NBA games.
Disney's broadcasting operations, including ABC, registered
a 37% increase in operating income to $229 million on a 2% gain in revenue to
$1.5 billion. Operating income got a boost from lower programming and
production costs because of the end of the syndicated Oprah Winfrey Show and decreased daytime and news production costs
at ABC. The network had higher ad rates and revenues, offset partially by a
decrease at the TV stations unit.
Disney's parks and resorts unit had a 53% increase in
operating income to $222 million on a 10% increase in revenues to $2.9 billion.
The gains from TV and parks offset an $84 million loss from
Studio Entertainment that reflected the performance of the bomb John Carter.