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Disney Posts 12 Percent Jump in Second-Quarter Profits

Posted on: Wednesday, 10 May 2006, 15:03 CDT

By Phyllis Furman, Daily News, New York

May 10--The Mouse House rocks again.

Disney said its profits jumped 12 percent in the second quarter yesterday thanks to strong results at the Disney theme parks and at "Desperate Housewives" network ABC.

The media giant reported net income of $733 million, or 37 cents a share, beating analysts' expectations of 31 cents a share. In the year-ago quarter, Disney reported profits of $657 million, or 31 cents. Sales rose 3 percent to $8.03 billion, below analysts' estimate of $8.14 billion.

"Disney's ongoing commitment to creative and operational excellence is evident in our strong second quarter results," Disney CEO Bob Iger said in a statement.

Disney's profit surge came despite weakness at its movie studio where revenues fell 22 percent and profits dropped 39 percent.

"Chicken Little" grossed $135.4 million in the U.S. and Canada, almost half the gross for the "Incredibles," according to sales tracker Box Office Mojo.

The big stars of the quarter were Disney's cable and broadcast networks. ABC was able to jack up prices for its commercials as viewers continued to flock to hit shows like "Lost" and "Desperate Housewives." Cable network ESPN also made the profit highlights, raising the rates it charges its affiliates.

Another thrill-giver was Disney's theme parks unit. Profits jumped 17 percent as visitors hit Disneyland and Disney World and spent money at Disney hotels. Profits at Disney's consumer products division fell 8 percent.

Disney's been on a tear since Iger took over from longtime Disney boss Michael Eisner last October. Iger has kept the momentum going at ABC, while orchestrating the $6.4 billion acquisition of animation powerhouse

Pixar, which made Apple boss Steve Jobs Disney's largest single shareholder. The next Pixar flick, "Cars," drives into theaters on June 9.

Disney's shares are up more than 23 percent this year, at one point yesterday hitting a 52-week high of $29.60.

They stock closed yesterday at $29.58, up 81 cents, or 2.8 percent, and rose another 42 cents in after-hours trading. pfurman@nydailynews.com

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Copyright (c) 2006, Daily News, New York

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PIXR, DIS,

Source: Daily News

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