Media/Entertainment
Disney Light on Top
Sandy Brown
05/09/06 - 04:56 PM EDT
Updated from 4:24 p.m.
Media big Disney(DIS Quote) beat fiscal second quarter earnings targets Tuesday, sending its shares up 1% in late trading.
The Burbank, Calif., company made $733 million, or 37 cents per share, for the quarter ended April 1. That compared favorably to a year-ago profit of $657 million, or 31 cents per share. Revenue climbed 3% to just over $8 billion from $7.8 billion.
Analysts polled by Thomson Financial were looking for the company to earn 31 cents a share on revenue of $8.17 billion.
"Disney's ongoing commitment to creative and operational excellence is evident in our strong second-quarter results," said Chief Executive Robert Iger. "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."
The Media Networks division, which includes TV network ABC, was a strong point, with an 18% rise in revenue to over $3.5 billion. Parks results were solid, gaining 7% on the top line. The company's studio entertainment division revenue declined 22%.
Iger reiterated the company's three top priorities on the call: innovation, technology and expansion. Iger said Disney's is the "only true global brand in the entertainment business."
Iger said the company will take advantage of new distribution platforms and use them to serve consumers and grow the company's reach.
On the company's recent decision to allow certain shows including Lost and Desperate Housewives for free on ABC.com, Iger said it was a way to try and replicate the broadcast model on the Web.
On ABC.com and free TV shows on the Web, Iger said the "long term potential of this is already being proven to us in our early results." Iger declined to offer numbers but said he is "pleased with the traffic."