Disney says TV ad sales strong
LOS ANGELES (Reuters) - Walt Disney Co (DIS.N) Chief Financial Officer Tom Staggs on Thursday said advertising sales were strong despite the difficult economic climate, but Disney would look to cut costs if the strike by Hollywood screenwriters, which began this week, drags out.
"Concerns over the economy and, more specifically, the travel and tourism and the ad market are of consideration for many companies this year," Staggs said on a conference call after Disney reported quarterly results.
"While these factors could impact our 2008 results, thus far our businesses remain strong and we have not seen indications of a downturn," said Staggs. Disney's domestic theme parks, rooms on the books and attendance to date for the first quarter are mid-single-digit percentages ahead of last year, he noted.
In Disney's media networks, the advertising marketplace remains very healthy, he said, with prices in the scatter market -- ad time bought close to air dates -- particularly strong.
Staggs said ABC's scatter pricing was running strong, about double-digit percentages ahead of the company's pricing for upfront ads -- commercial time purchased around May for the fall season.
Staggs said that while some strength in scatter pricing was being driven by tightening supply, underlying demand in the marketplace was very strong.
"Cable net advertising is also very solid with ad sales trending up double digits in the first quarter," he said.
Staggs said it was premature to predict the impact of the Writers Guild of America strike against major film and television studios, but he said an extended walkout would first have an impact on Disney's television operations. The strike began on Monday.
"Film results will be impacted later and probably not until 2009," he said.
"Of course, we will pursue opportunities to reduce costs in order to mitigate any impact from a prolonged work stoppage," he said.
Chief Executive Bob Iger said that the ABC television network, which already has delayed the start of drama "Cashmere Mafia," had about four weeks of programs ready to air. "If the writers stay out for a four-week-plus period of time, it will definitely have an impact upon ABC's schedule," he said.
(Reporting by Gina Keating and Sue Zeidler)
