Walt Disney Co. reports strong quarter of increasing revenue, profits

[crazy4wdw]

From the Orlando Sentinel:

Walt Disney Co. reports strong quarter of increasing revenue, profits
Scott Powers | Sentinel Staff Writer
4:20 PM EST, February 5, 2008

Against a backdrop of some of the most conflicting analysts forecasts it has faced lately, The Walt Disney Co. reported another strong quarter of increasing revenue and profits this afternoon, and beat expectations by offering diluted earnings of 63 cents per share, though that was lower than last year's offering.

"We've started off 2008 with another outstanding quarter, marked by strong creative and operational performances," Robert Iger, president and chief executive officer, stated in a news release. "These results once again highlight the quality of our content and our unique ability to leverage it across our many businesses and territories."

In Disney's first quarter, which ended Dec. 29, revenue was reported at $10.45 billion, up 9 percent for the quarter over the same three-month period in the 2006-07 fiscal year. Segment operating income was reported at $2.25 billion for the quarter, up 15 percent over the first quarter last year.

Disney reported a strong quarter for its parks and resorts segment, where revenue totaled $2.77 billion, up 11 percent over last year, and operating income reached $505 million, up 25 percent over last year.

The earnings offering for this first quarter of Disney's 2007-08 fiscal year was off 20 percent from the first quarter of the 2006-07 fiscal year, when 79 cents per share was offered.

Thomson / First Call's survey of analysts settled on a median forecast of 52 cents per share for this past quarter.

A wave of conflicting forecasts came out last week in anticipation of this earnings report. Some analysts, fearing the economic wobbles already were affecting Disney's theme parks, issued pessimistic reports, including one by Citi Investment Research analyst Jason B. Bazinet who downgraded his recommendation to "sell."

But after a brief sell-off of stock last week, Disney officials made an unusual response, calling media to profess that theme park hotel bookings were running ahead of the prior year's pace, a positive signal for theme park business.

Other analysts have weighed in with neutral or even buy recommendations for Disney stock. Richard Greenfield and Mark D. Smaldon of Pali Research upgraded their view following public statements by Disney Chief Financial Officer Thomas Staggs.

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

 

[MJMcBride]

Yet despite this good news, Disney execs were again talking about "adjusting" park hours.

http://www.mouseextra.com/2008/02/0...hen-will-that-means-something-to-us/#comments

Seems odd to me. How are we supposed to believe there are economic issues when there is an 11% revenue increase

 

[paulh]

Yet despite this good news, Disney execs were again talking about "adjusting" park hours.

http://www.mouseextra.com/2008/02/0...hen-will-that-means-something-to-us/#comments

Seems odd to me. How are we supposed to believe there are economic issues when there is an 11% revenue increase

adjust hours so they can put on after park events.P+P,MNSSHP ect and charge mor.i still rember when we whent out of the park 2am in the early 90s
Paulh

 

[Another Voice]

Seems odd to me. How are we supposed to believe there are economic issues when there is an 11% revenue increase.

The increase in revenue mostly came from price hikes. And the increase in income comes from cutting costs.

In short - Disney charges more for less.

 

[CanadianGuy]

.i still rember when we whent out of the park 2am in the early 90s
Paulh

I went out of a park last June at 2am... and in March of 2007 at 3am.

 

[stepnut]

The increase in revenue mostly came from price hikes. And the increase in income comes from cutting costs.

In short - Disney charges more for less.

Revenue is the same as income, isn't it? Do you mean profit instead of income?