Theme parks and media networks delivered for Disney, but filmed entertainment wasn’t as helpful for the quarter that ended in September. The company reported net income of $1.39B, +11.1% vs the same period last year, on revenues of $10.78B, +3.4%. The revenue figure missed the Street’s expected $10.92B. But earnings per share, not including one-time items, came in at 68 cents, right where analysts anticipated. The Media Networks operation delivered $4.88B in revenues (+2%) and $1.57B in operating income (+7%). Disney’s cable channels led the charge, mostly due to rising ad sales and affiliates fees for ESPN. But the ABC broadcasting unit was flat due to weak ad sales — lower ratings offset the higher rates — and equity losses at Hulu. Parks and Resorts benefited from improved results at Tokyo Disney Resort (which was temporarily closed last year following the country’s earthquake and tsunami) and Disney California Adventure’s new “Cars Land” attraction. The operation had revenues of $3.43B (+9%) and operating income of $497M (+18%). But revenues at the Studio Entertainment unit fell 4% to $1.4B, with operating income down 32% to $80M. Disney says that Brave was no match for last year’s Cars 2, and the studio had pre-release marketing expenses for Frankenweenie. Meanwhile, sales of products tied to Spider-Man, the Avengers, and Minnie and Mickey helped drive Consumer Products revenue +8% to $883M with operating income +29% to $267M. Revenues for the Interactive operation fell 14% to $191M with an operating loss of $76M, an improvement from last year’s $94M loss. CEO Bob Iger says that with the recent deal to acquire Lucasfilm, “we’re confident the company is well positioned to continue our strong performance and growth.”
By DAVID LIEBERMAN, Financial Editor | Thursday November 8, 2012 @ 4:25pm ESTTags: ABC, Disney, ESPN
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