The Walt Disney Co. reported a 2% gain in broadcast revenue for its fiscal
third quarter (ended June 30) to $1.23 billion while operating profits
more than doubled to $183 million.
Cable-network revenues were up 38% to $1.27 billion, with a 5% decline in
operating profits to $201 million.
The company cited a better advertising climate for ABC and its owned TV
stations, as well as fewer make-goods and far lower programming costs at the network.
On the cable side, the company cited higher programming costs at ESPN
(particularly rights for the National Basketball Association) and continued
investment in ABC Family.
The company said cable would be a key driver of revenues going
Peak operating performance for the broadcast network is still at least one year
away, president Bob Iger said.