Dear Fellow Employee:
I'm pleased to report that we had a strong third quarter, driven by our Media Networks and Parks and Resorts businesses. Net income in the quarter was up 11 percent on a 7 percent revenue increase. EPS for the quarter, adjusted for comparability, grew 16 percent to 78 cents.
At Media Networks, growth was primarily driven by ESPN, and higher advertising revenue at Broadcasting also contributed to the quarter. ABC just ended its press tour and we are really excited about the fall schedule. ESPN demonstrated its strength with its coverage of the NBA Playoffs and the FIFA Women's World Cup. Last year, ESPN enjoyed its highest-rated and most-viewed season of Monday Night Football yet, and we are looking forward to another great NFL season. In addition, ESPN will broadcast more than 300 college football games across ESPN, ESPN2, ESPN3, ESPNU and ABC. ESPN reached a 12-year deal with Pac-12 Conference sports that includes football and basketball, and a 12-year agreement to be the exclusive U.S. broadcaster of Wimbledon.
Our Disney Channel business continues its great creative streak, and it's now in 100 countries. During the third quarter, Disney Channel's ratings were up 10 percent while Disney XD's ratings were up 24 percent. And this past Friday, Disney Channel's original movie, Phineas and Ferb: Across the 2nd Dimension, the most recent installment in this franchise, debuted to phenomenal success, becoming cable's No. 1 movie of the year in Total Viewers and the No. 1 scripted telecast on all TV this year with Kids.
At the Studio, Marvel's Thor and Captain America: The First Avenger both opened to strong box office results. Thor has earned almost $450 million in global box office and Captain America is on track to do the same. Marvel's approach, starting with great characters and stories, attracting great filmmakers and producing high quality films, bodes well for our next film, Marvel's The Avengers, which we are aiming to turn into another great franchise for the Company. The Avengers will be released in May 2012.
Cars 2 opened on June 24, and is on its way to earning well over $500 million in global box office. It remains one of the biggest and most important franchises at the Company.
I'm excited about the upcoming film slate. Tomorrow, The Help, from DreamWorks will open and we are very encouraged by the early response to this film. At Thanksgiving, The Muppets return to the big screen in a family comedy. John Carter, Disney's live action film from Wall·E and Finding Nemo director Andrew Stanton, will be at the theaters in March. In June, Pixar's next original film, Brave, will hit theaters.
At Parks and Resorts, we're looking forward to the opening of our first stand-alone resort and spa, Aulani, which will welcome guests in Hawaii at the end of this month, and the completion of work on Disney Fantasy, which will begin sailing in 2012. The expansion of Fantasyland at Magic Kingdom in Walt Disney World will double the size of one of our most popular attractions. Disney California Adventure's World of Color and The Little Mermaid ~ Ariel's Undersea Adventure, the first two attractions to open as part of the California Adventure redesign, have enjoyed tremendous success, helping to fuel record third quarter attendance at the Disneyland Resort. Construction at Cars Land is well on its way, and is set to open in summer 2012 with the completion of California Adventure's redesign.
In Hong Kong, Parks and Resorts is moving forward with three new themed areasToy Story Land, Grizzly Gulch and Mystic Point. We expect the expansion to continue the upward momentum we have been enjoying at Hong Kong Disneyland.
In closing, we are optimistic about our creative pipeline across our businesses and confident our current long-term strategy will create shareholder value. With our strong brands, including Disney, ESPN, Pixar, Marvel and ABC, we remain well positioned for whatever economic environment we face. Once again, I'd like to thank all of you for your hard work, dedication, creativity, enthusiasm and commitment to excellence that you bring to Disney each and every day.
Sincerely,
Bob
I'm pleased to report that we had a strong third quarter, driven by our Media Networks and Parks and Resorts businesses. Net income in the quarter was up 11 percent on a 7 percent revenue increase. EPS for the quarter, adjusted for comparability, grew 16 percent to 78 cents.
At Media Networks, growth was primarily driven by ESPN, and higher advertising revenue at Broadcasting also contributed to the quarter. ABC just ended its press tour and we are really excited about the fall schedule. ESPN demonstrated its strength with its coverage of the NBA Playoffs and the FIFA Women's World Cup. Last year, ESPN enjoyed its highest-rated and most-viewed season of Monday Night Football yet, and we are looking forward to another great NFL season. In addition, ESPN will broadcast more than 300 college football games across ESPN, ESPN2, ESPN3, ESPNU and ABC. ESPN reached a 12-year deal with Pac-12 Conference sports that includes football and basketball, and a 12-year agreement to be the exclusive U.S. broadcaster of Wimbledon.
Our Disney Channel business continues its great creative streak, and it's now in 100 countries. During the third quarter, Disney Channel's ratings were up 10 percent while Disney XD's ratings were up 24 percent. And this past Friday, Disney Channel's original movie, Phineas and Ferb: Across the 2nd Dimension, the most recent installment in this franchise, debuted to phenomenal success, becoming cable's No. 1 movie of the year in Total Viewers and the No. 1 scripted telecast on all TV this year with Kids.
At the Studio, Marvel's Thor and Captain America: The First Avenger both opened to strong box office results. Thor has earned almost $450 million in global box office and Captain America is on track to do the same. Marvel's approach, starting with great characters and stories, attracting great filmmakers and producing high quality films, bodes well for our next film, Marvel's The Avengers, which we are aiming to turn into another great franchise for the Company. The Avengers will be released in May 2012.
Cars 2 opened on June 24, and is on its way to earning well over $500 million in global box office. It remains one of the biggest and most important franchises at the Company.
I'm excited about the upcoming film slate. Tomorrow, The Help, from DreamWorks will open and we are very encouraged by the early response to this film. At Thanksgiving, The Muppets return to the big screen in a family comedy. John Carter, Disney's live action film from Wall·E and Finding Nemo director Andrew Stanton, will be at the theaters in March. In June, Pixar's next original film, Brave, will hit theaters.
At Parks and Resorts, we're looking forward to the opening of our first stand-alone resort and spa, Aulani, which will welcome guests in Hawaii at the end of this month, and the completion of work on Disney Fantasy, which will begin sailing in 2012. The expansion of Fantasyland at Magic Kingdom in Walt Disney World will double the size of one of our most popular attractions. Disney California Adventure's World of Color and The Little Mermaid ~ Ariel's Undersea Adventure, the first two attractions to open as part of the California Adventure redesign, have enjoyed tremendous success, helping to fuel record third quarter attendance at the Disneyland Resort. Construction at Cars Land is well on its way, and is set to open in summer 2012 with the completion of California Adventure's redesign.
In Hong Kong, Parks and Resorts is moving forward with three new themed areasToy Story Land, Grizzly Gulch and Mystic Point. We expect the expansion to continue the upward momentum we have been enjoying at Hong Kong Disneyland.
In closing, we are optimistic about our creative pipeline across our businesses and confident our current long-term strategy will create shareholder value. With our strong brands, including Disney, ESPN, Pixar, Marvel and ABC, we remain well positioned for whatever economic environment we face. Once again, I'd like to thank all of you for your hard work, dedication, creativity, enthusiasm and commitment to excellence that you bring to Disney each and every day.
Sincerely,
Bob
