The
company's net income rose to $733 million from $657
million. Sales advanced 2.5 per cent to $8.03 billion
in the period ended 1 April. Diluted earnings per
share (EPS) for the second quarter increased 19 per
cent to $0.37, compared to $0.31 in the prior year
quarter. For the six months period, diluted EPS increased
16 per cent to $0.74 compared to $0.64 in the prior
year period.
"Disney's
ongoing commitment to creative and operational excellence
is evident in our strong second quarter results. At
the same time, the strategic initiatives we pursued
during the quarter help position us for future creative
success, new opportunities to reach consumers with
our products, and long term value creation for our
shareholders," said the Walt Disney Company president
and CEO Robert A Iger.
The
company's Media Networks revenues for the quarter
increased 18 per cent to $3.6 billion and segment
operating income increased 20 per cent to $969 million
driven by strong performance at broadcasting.
The
operating income at Cable Networks increased $41 million
to $ 809 million for the quarter primarily due to
growth at ESPN, which was driven by higher affiliate
revenues from increased contractual rates. This increase
was partially offset by higher revenue deferrals at
ESPN, investments in ESPN branded mobile phone service,
increased programming and production expenses and
higher administrative costs at ESPN. ABC's hit dramas
such as Desperate Housewives and Grey's
Anatomy also help boost the network's revenues.
Revenue
deferrals at ESPN increased by $31 million versus
the prior year quarter due to new programming commitments
in an affiliate contract and higher affiliate rates.
Revenue deferrals for the six month period increased
$137 million as compared to the prior six month period.
Cable Networks also experienced modest profit growth
at the Disney Channel and ABC Family.
Broadcasting
Operating
income at broadcasting increased $122 million to $160
million for the quarter primarily due to improved
performance at the ABC Television Network and Television
Production and Distribution, partially offset by investments
in new initiatives at the Internet Group.
The
growth at ABC Television Network was due to increased
primetime advertising revenues resulting from strong
upfront sales and continued strength in ratings. Ad
revenues also increased due to the Super Bowl and
the timing of Bowl Championship Series games, although
this increase was essentially offset by related programming
and production expenses. The increase at television
production and distribution was driven by higher third
party license fees for Scrubs, as this series
entered its fifth season of network television, and
increased international sales of Touchstone Television
dramas.
Parks
and Resorts
Parks
and Resorts revenues for the quarter increased seven
per cent to $2.3 billion and segment operating income
increased 17 per cent to $214 million. Operating income
growth at the resorts was due to increased theme park
attendance, higher hotel guest spending and occupancy
and strong sales at Disney Vacation Club.
Studio
Entertainment
Studio
Entertainment revenues for the quarter decreased 22
per cent to $1.8 billion and segment operating income
decreased 39 per cent to $ 147 million. This was mainly
because the company's DVD releases have not sold well.
"Lower segment operating income was due to a
decline in worldwide home entertainment partially
offset by increases in domestic theatrical motion
pictures distribution and worldwide television distribution,"
an official statement said.
Consumer
Products
Consumer
products revenues for the quarter decreased three
per cent to $451 million and the operating income
decreased eight per cent to $104 million. The decrease
in operating income was driven by lower results at
Buena Vista Games and Merchandise Licensing.
