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| Donald Duck poses with Mickey Mouse
during a Hollywood Walk of Fame unveiling ceremony, in Los Angeles,
California August 9, 2004.(Reuters) |
Net profits at media giant The Walt Disney Co. rose 20 percent in
the second quarter, boosted mainly by increased attendance at its theme parks and
growth at its cable networks.
Disney reported Tuesday that it earned $604 million, or 29 cents per
share, for the quarter ended June 30, compared with $502 million, or 24
cents per share, in the same period last year.
Revenue climbed 17 percent to $7.471 billion from $6.377 billion in the
same period last year.
The results beat expectations of analysts surveyed by Thomson First
Call, who had expected earnings of 27 cents per share.
Disney warned that comparisons would be more difficult over the next
two quarters, especially in light of fewer successful films compared to
last year. But profits are still on track to increase by double digits
through 2007 and Chief Financial Officer Thomas Staggs predicted record
cash flow in 2005.
Some of that cash will be used to increase Disney's dividend and buy back
shares , Staggs said.
Disney wrote off $56
million during the quarter related to the closing of many of its retail
stores. More write-downs are a possibility as Disney
negotiates a sale of the chain to The Children's Place, the company said.
Results were led by a 20 percent rise in operating income at its theme
parks, primarily Walt Disney World in Florida, where attendance rose 20
percent during the quarter.
Attendance rose only 1 percent at the Disneyland Resort in Anaheim,
Calif., after Disney decided to limit discounts. But per capita spending
rose 8 percent in the quarter.
Disney's parks reported operating income of $421 million, compared to
$352 million in the same period last year.
Income also rose 15 percent at Disney's media networks division to $673
million, which includes the still troubled ABC Television network as well
as cable channels such as ESPN and the Disney Channel.
Profits at the Disney Channel could be squeezed next year as the
company invests $100 million on 15 to 20 new animated shows designed to
create new character franchises, Disney President and Chief Operating
Officer Robert Iger said during a conference call with analysts.
Advertising revenue increased 32 percent at Disney's ABC Family cable
channel and the addition of the WB's "Smallville" and "Gilmore Girls" to
the fall schedule should boost earnings even further, Iger said.
(Agencies) | 
Updated: 2004-08-11 10:36