Disney Earnings Beat Estimates

Buoyed by growth at its media networks and stellar attendance at its theme parks, the Walt Disney Co. surpassed analysts’ estimates by six cents, as its net income increased 5 percent to $723 million, or 35 cents per share, up from $688 million or 33 cents share, in the comparable period last year. Disney’s quarterly revenue rose to $8.6 billion, up from $8.5 billion in the comparable period in 2003. Disney’s media networks revenue increased 11 percent to $3.5 billion, and segment-operating income increased 36 percent to $467 million. Political advertising revenue and ad revenue from football games aired on ABC helped Disney to turn a profit, as well as a notable increase in parks and resorts revenue, which spiked 30 percent to $2.1 billion. Disney’s first quarter results were also marked by a studio entertainment revenue drop of 20 percent to $2.4 billion, attributed to lower DVD sales. Disney’s numbers for the quarter included an impairment charge of $17 million or $11 million after tax, for the sale of the Disney Store North America to The Children’s Place Retail Stores Inc. for $100 million. Earnings per share for the quarter included a $24 million benefit from the resolution of certain income tax matters.