Disney profit rises on theme parks, TV networks
LOS ANGELES (Reuters) - Walt Disney Co (DIS.N) reported on Thursday a 12 percent rise in quarterly profit, driven by its television networks and U.S. theme parks, but revenue slightly missed Wall Street's target.
Sports network ESPN reported a rise in advertising revenue, and the unit recognized previously deferred revenue as well, driving networks growth. With Disney's theme parks, a drop in Hong Kong Disneyland's results offset improvement elsewhere.
Shares of Disney, the second-largest U.S. entertainment company, fell 1 percent.
Net income rose to $877 million, or 44 cents per share, from $782 million, or 36 cents per share, in last year's fiscal fourth quarter. Revenue rose 3 percent to $8.9 billion.
Excluding a 2-cent-per-share tax-related benefit, Disney earnings were 42 cents per share, in line with Wall Street's average target. Analysts, on average, had forecast revenue of $9.02 billion, according to Reuters Estimates.
Media networks revenue rose 14 percent to $4.0 billion, and operating income at the segment rose 25 percent to $1.1 billion. Parks revenue rose 10 percent to $2.8 billion, while the unit's income rose 9 percent to $430 million.
Chief Financial Officer Tom Staggs said on a conference call Hong Kong Disneyland creditors had agreed to amend debt covenants and that Disney would forego royalties for a couple of years.
Staggs later told analysts that he did not see indications of an economic downturn in travel, tourism or ad markets.
The company's studio posted a 24 percent decline in revenue to $1.5 billion compared with a year earlier, when Disney's "Pirates of the Caribbean: Dead Man's Chest" was playing, while consumer products revenue rose 5 percent to $590 million.
Like rivals Time Warner Inc (TWX.N) and Viacom Inc (VIAb.N), Disney is benefiting this year from a string of box office blockbusters and strong cable advertising rates. A weak dollar also boosted visitation to Disney resorts and theme parks, as U.S. vacationers stayed closer to home.
Disney's share price rose less than 1 percent in its fourth quarter ended September 29. The stock was trading at a multiple of 15.7 times estimated 2008 earnings, compared with 15.7 for Time Warner and 15.6 for Viacom, according to Reuters Estimates.
The stock fell to $33.21 in after-hours trade from a close of $33.63 on the New York Stock Exchange.
