Soft Movie Biz Doesn't Hurt Disney's Q28 May, 2007 By: Erik Gruenwedel
Despite a 13% drop in studio entertainment revenues, The Walt Disney Co. May 8 reported second quarter (ended March 31) net income of $931 million, compared to $733 million during the same period last year.
Total revenues increased 1% to $8.07 billion, compared to $8.02 billion last year.
A dearth of foreign and domestic theatrical releases, compared to last year's The Chronicles of Narnia: The Lion, The Witch and The Wardrobe and Chicken Little, negatively impacted quarterly results, according to a filing.
At the same time, operating income for studio entertainment, which is based in part on a strong release slate in the current quarter and lower distribution expenses, increased 60% to $235 million, compared to $147 million last year.
Burbank, Calif.-based Disney cited strong revenue performances across its other business segments, including a 14% increase to $516 million in consumer products and a 9% increase to $2.4 billion in theme parks and resorts.
Revenue for the media networks division, which includes ESPN and the Disney Channel on cable, in addition to ABC TV, increased $154 million and $52 million, respectively, or 1% collectively to $3.6 billion, from $3.5 billion last year.