TV Networks Group Largely Behind Disney’s Gains

Disney’s net income grew 85% to $2.3B during FY ’04, and ESPN “was largely behind the gain, driving 79[%] growth of the company’s television division,” according to Todd Pack of the ORLANDO SENTINEL. Television revenue rose 8% to $11.8B for the year, while Q4 TV revenue increased 10% to $2.9B and operating income was up 50%. Pack writes “higher advertising revenue and lower [NFL] programming costs at ESPN helped lead Disney’s largest segment, its cable and broadcast networks.” Disney overall posted a Q4 profit of $516M, or $0.25 per share, up 24% from the year ago period, exceeding analysts expectations of $0.18 a share (ORLANDO SENTINEL, 11/19). Disney’s numbers were also “aided by gains in one-time laggards including the Parks and Resorts unit and Disney Consumer Products” (HOLLYWOOD REPORTER, 11/19). Disney CEO Michael Eisner “underscored current growth across all of Disney’s business divisions and declared that its brands were ‘in incredibly good health.’” Eisner: “We’ve had a bright year at the Walt Disney Co. [But] we are not declaring victory yet” (L.A. TIMES, 11/19). DAILY VARIETY’s Ben Fritz notes Disney is “particularly excited about China, where it’s expanding its ESPN brand and creating new retail outlets. Execs also pointed to India as a key market for expansion” (DAILY VARIETY, 11/19).