Disney Exceeds Expectations, Reports 9% Increase In Q1 Revenue

Walt Disney Co. “exceeded analysts’ recession-clouded projections Tuesday, reporting a 9% increase in revenue fueled by the Disney Channel’s popular ‘Hannah Montana’ and ‘High School Musical’ franchises,” according to Dawn Chmielewski of the L.A. TIMES. Disney reported Q1 net income of $1.25B, or $.63 a share, for the quarter that ended December 29, compared with $1.7B, or $.79, a year earlier. That represents a drop of 27%, “reflecting one-time gains in the year-earlier quarter from the sale of Disney’s stake in E! Entertainment and Us Weekly magazine.” Disney’s cable networks “clearly buoyed” the company’s results. Operating income rose to $586M for the quarter, up $125M from the year-ago period. ESPN has “long been a standout for Disney, but its double-digit growth in ad revenue was offset by increased sports rights and programming costs” (L.A. TIMES, 2/6). Revenue rose 9%, to $10.45B, “led by gains in advertising revenue at ABC and ESPN” (N.Y. TIMES, 2/6). At presstime, shares of Walt Disney Co. were trading at $32.00, up 6.42% from yesterday's close of $30.07 (THE DAILY).