Disney Income Rises 40 Percent in Q3

The five business units of The Walt Disney Co. all had revenue increases in the third quarter, with feature films and video games particularly strong. The Burbank-based media and entertainment conglomerate posted net income of $1.3 billion, or $0.67 per diluted share, on revenues of $10 billion for the quarter ending July 3. For the same period in 2009, the company reported net income of $954 million, or $0.51 per diluted, on revenues of $8.6 billion. The company’s quarterly earnings reflect a strategy of investing in the right people, and of focusing relentlessly on quality and innovation to drive growth in shareholder value,” said Disney President and CEO Robert Iger. The Interactive Media business unit showed the highest revenue increase at 74 percent over the third quarter in 2009. The increase was attributed to higher sales in Disney title video games, including, “Toy Story 3” and “Split Second.” “Toy Story 3” also contributed to the strong performance in the filmed entertainment division, which had an increase to $1.6 billion, or by 30 percent, over the $1.3 billion in revenues from the third quarter of 2009. The box office draw of “Iron Man 2” and “Alice in Wonderland” also contributed to the revenues. The weakest business unit was parks and resorts, with an increase of 3 percent over the third quarter in 2009. The poor performance was attributed to fewer visitors at Disney theme parks, hotels and cruise ships. Shares in Disney closed up at $35.29. Mark R. Madler