TV, theme parks boost Disney's profit
LOS ANGELES -- The Burbank, Calif.-based media conglomerate reported net income for the three months ended June 30 of $1.178 billion, or 57 cents a share, compared to $1.125 billion, or 53 cents a share, in the same period last year.
Revenue climbed to $9.045 billion from $8.474 billion in the year-ago period.
Analysts surveyed by Thomson First Call had expected profit of 55 cents a share on revenue of $9.015 billion.
The company saw double-digit growth in its theme parks, media networks and consumer products division in the quarter.
Despite the success of Pirates of the Caribbean: At World's End, profits fell at Disney's film studio amid lower revenue from DVD sales.
The company announced it acquired Club Penguin for $350 million in cash, with the possibility of another $350 million if certain profit goals are reached in the next few years.
The website allows kids ages 6-14 to build virtual igloos and inhabit a world where they appear on-screen as plump cartoon penguins.
Disney said it sees profit potential in virtual online environments. The company already has an online game, Toontown, and has said it is creating an online multiple-player game based on its Pirates of the Caribbean films.
Disney chief executive Robert Iger said Club Penguin has high profit margins and would contribute to the company's earnings in the first year.
Operating income at Disney's media networks division jumped 23% during the third quarter to $1.358 billion on the strength of subscription fees paid by cable companies for its ESPN channel and ad revenue at ABC, the company said.
Iger said the company sold $2.4 billion worth of advertising for primetime programming on its ABC network, and increased the amount of ads on its ABC Family and ESPN networks.
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