Disney 2Q Earnings Rise 27 Percent

[crazy4wdw]

Disney 2Q Earnings Rise 27 Percent

Disney 2Q Earnings Rise 27 Percent
By GARY GENTILE

LOS ANGELES (AP) - Net income at The Walt Disney Co. increased 27 percent in the second quarter, boosted by strong results from its film studio, advertising sales at ESPN and international sales of its TV shows, including "Desperate Housewives."

The media conglomerate, based in Burbank, said Tuesday its net income for the quarter ended March 31 was $931 million, or 44 cents per share, compared with $733 million, or 37 cents per share, in the same period a year ago.

Revenue grew slightly to $8.07 billion from $8.03 billion in the same period last year.

The company's per share earnings easily beat estimates of 38 cents per share from analysts surveyed by Thomson Financial, although its revenue missed analyst expectations of $8.13 billion.

The company reported profit growth at all segments, including theme parks and consumer products.

"I'm pleased to report another excellent quarter, with double digit increases in earnings per share as well as operating income across all of our business segments," Disney chief executive Robert Iger said in a statement.

 

[crazy4wdw]

Disney earnings beat expectations for 2nd quarter

Disney earnings beat expectations for 2nd quarter

Scott Powers | Sentinel Staff Writer
Posted May 8, 2007, 4:17 PM EDT

The Walt Disney Co. today reported diluted earnings of 44 cents per share for the second quarter of 2007, beating market expectations and the 37 cents per share posted for the same period last year.

"I'm pleased to report another excellent quarter, with double digit increases in earnings per share as well as operating income across all of our business segments," said Robert Iger, president and CEO.

Disney reported quarterly revenue of $8.07 billion, up 1 percent over the 2nd quarter of 2006, resulting in an operating profit of $931 million, up 27 percent over the same three months in 2006.

Disney's parks and resorts unit did particularly well, increasing sales 9 percent to $2.4 billion, posting an operating profit of $254 million for the quarter, up 19 percent from last year.

The parks unit's performance was boosted by increased guest spending, driven by higher average ticket prices and average daily room rates, plus increased attendance, according to the report. Those increases partially offset the higher operating costs seen at Walt Disney World -- due to labor cost inflation, new visitor offerings, marketing and volume-related costs -- and at Disneyland Resort Paris, the company reported. Income declined at Disney's newest park, Hong Kong Disneyland.

 

[JoeEpcotRocks]

Good news!

Thanks for posting.

 

[crazy4wdw]

Resorts help drive earnings for Disney

Scott Powers | Sentinel Staff Writer
Posted May 9, 2007

A strong performance from Walt Disney World and other Disney theme parks helped the company reach another profitable quarter last winter.

The company reported Tuesday that while total sales were up just 1 percent to $8.07 billion, profit reached $931 million for the second quarter of the 2007 fiscal year, 27 percent better than profits posted in the same three months in 2006.

With that, Disney offered diluted earnings of 44 cents per share to investors. The offer beat consensus market expectations of around 36 cents, and the 37 cents per share that Disney offered following its second quarter of 2006.

"We've had another excellent quarter, posting double-digit increases in net income and earnings per share," said Disney President and Chief Executive Officer Robert Iger. "These results are evidence of our ability to nurture great creativity, our strength in operating a broad range of businesses, and our commitment to financial discipline. . . . They validate our strategic vision."

Disney's stock closed Thursday at $36.55 per share, up 49 cents.

Analysts were pleased with the report.

"I don't think they had anything to complain about. All the divisions showed nice profits," said media analyst Harold Vogel of Vogel Capital Management.

Internationally marketed Disney channels, strong syndication of ABC-TV shows, hot Cars toys and Disney-published game sales and hit, relatively inexpensive movies such as Wild Hogs and Bridge to Terabithia helped all the company's operating units post quarterly profits.

Disney's parks and resorts division, which includes theme parks, hotels, the Disney Vacation Club time-share program and the Disney Cruise Line, saw sales grow 9 percent to $2.4 billion in the quarter, which ended March 31.

That success was boosted by increased attendance and higher per-customer spending, which was driven by higher average ticket prices and average daily room rates, according to the report. As a result, the parks and resorts division posted an operating profit of $254 million, up 19 percent from the same period last year.

Those increases partially offset the higher operating costs seen at some parks including Walt Disney World -- due to labor cost inflation, new attractions, increased marketing and volume-related costs, the company reported. Most of Disney's other parks also did well.

But Disney Chief Financial Officer Tom Staggs said Hong Kong Disneyland, which opened in the fall of 2005, continues to fall short of expectations and Disney is planning new marketing campaigns.

"We're confident in and committed to this project," he said. "We're likely to continue to invest in this park."

Disney World, by contrast, saw attendance increase 7 percent over the same quarter in 2006. Per-customer spending was up 3 percent. Disney World hotel occupancy was up slightly to 88 percent, and per-room spending also was up slightly, Staggs said. The average customer's length of stay at Disney World also continued to increase, he said.

Iger said Disney World saw strong attendance across the board in the quarter -- including international visitors, though they still are not flocking to Orlando at pre-2001 rates. He said Disney now is running a much more coordinated international theme park marketing program, and at the same time running a distinct Disney World program in Europe.

"We're particularly gratified at how well our Disney parks and resorts are performing," Iger said. "Walt Disney World just set a new 15-day Easter period attendance record. Overall bookings remain strong even in comparison with the record numbers drawn by the 50th anniversary of Disneyland, showing that our 'Year of a Million Dreams' campaign is having tremendous impact."

The things that surprised analysts most seemed to be the broadcast advertising revenue increases and the theme parks' solid performance in the face of continued high gas prices, nervous British visitors and higher ticket, hotel and labor prices.

"More times than not they have surprised investors by being able to pass [ticket price increases] through without hiccups from the customers," said Robin Diedrich, media analyst for Edward Jones. "The ticket to a Disney park still seems to be a highly valued option. That just bodes well overall. And they continue to add features and new attractions."

The entertainment giant's profit rose 27% to $931 million as all of its business segments turned in a strong second quarter.

Scott Powers can be reached at spowers@orlandosentinel.com or 407-420-5441.

 

[Another Voice]

Revenues flat but earnings were up.

Cut, hack, slash, postpone and cancel instead of create and inspire.

 

[JoeEpcotRocks]

Sounds like Disney is on track financially as they continue to work hard to improve and add attractions to the parks and resorts.

I'm excited about those two new cruise ships too!

 

[YoHo]

Joe, I get the impression that Disney could stab you as you entered the parks and you'd give them a thumbs up.

 

[cristen]

Joe, I get the impression that Disney could stab you as you entered the parks and you'd give them a thumbs up.

I thought that this was a requirement to post on the DIS.

 

[JoeEpcotRocks]

Joe, I get the impression that Disney could stab you as you entered the parks and you'd give them a thumbs up.

I get the impression that you hang out with Debbie Downer.

 

[YoHo]

Oh, I'm nothing but butterscotch and ponies.

That doesn't mean Disney is somehow a perfect company unable to make strategic and tactical business errors.

I try to save my pixiedust for when I'm actually at the parks.

 

[Another Voice]

Sounds like Disney is on track financially as they continue to work hard to improve and add attractions to the parks and resorts.

Sadly, Disney management says exactly the opposite. That the domestic parks are a "mature" business and will not recieve significant capital investment. That growth will be focused overseas, and the probablity for domestic growth will come from "offsite" water parks and hotels.


But gee, it's sure nice to know that you can program a ClicheBot 2000 to use references from a 1950's special ed film!

 

[MasterShake]

This thread is funny, you have AV and YoHo spouting their usual Disney hate rhetoric and then you have JoeEpcotRocks who sounds like he's being paid to write nothing but nice things.

 

[JoeEpcotRocks]

This thread is funny, you have AV and YoHo spouting their usual Disney hate rhetoric and then you have JoeEpcotRocks who sounds like he's being paid to write nothing but nice things.

Oh, how I wish I was paid for it.

 

[shanomi4]

I get such a kick out of the "know it alls"!!
They know what Disney did/does wrong
They know what Disney should do
They know what people want
They know how to run a billion dollar company

Me thinks that most of them sit in a cubical pushing paper.
Shame too...think about....they could of been CEO of Disne!!

 

[YoHo]

I have an office.

 

[MasterShake]

I have an office.

Yes, but do you have a window?

 

[YoHo]

Yes, With a view (on a clear day if I look a little to the right) Of the ocean.

 

[coasterj]

yay another good excuse disney ops only make $7.00 an hr! (sarcasm)
good thing my job is a hobby.

 

[EUROPACL]

I get such a kick out of the "know it alls"!!
They know what Disney did/does wrong
They know what Disney should do
They know what people want
They know how to run a billion dollar company

Me thinks that most of them sit in a cubical pushing paper.
Shame too...think about....they could of been CEO of Disne!!

Yeah I know it must disappoint you...but in a Capitalist society the consumers are the ones who get to make those decisions. I'm sure you think that Eisner had some special talent or insight just becuase he spent a few years green lighting bad movies. Eveery day in this country regular people run billion, million, and less dollar companies...its a great place to live. Even if you can't wrap your head around bad ideas like half finished parks, bad movies, bad TV shows and the slow downward spiral that is Disney...we can.

 

[Another Voice]

Me thinks that most of them sit in a cubical pushing paper.
Shame too...think about....they could of been CEO of Disne!!

My office was in a building with dwarfs.