Disney Beats Fiscal 4Q Estimates With Strong Results At ESPN And Theme Parks

The company reportednet income of $1.1B, up 30% vs the period last year, on revenues of $10.43B, up 7%. That comfortably beat Street forecasts for revenues of $10.36B. Earnings, at 58 cents a share, also topped predictions of 54 cents — and without one-time charges would have hit 59 cents. Disney’s cable channels led the charge with revenues up 9% to $4.8B and a 20% hike in operating profits to $1.46B. The company says that ESPN and the overseas channels led the way with higher affiliate fees and international ad growth — although the sports channel was hurt by rising costs for programming and marketing and a ratings drop from the loss of the FIFA World Cup. The networks figures include the ABC broadcast operation, where revenues were up 4% to $1.33B with a 37% increase in operating income to $201M. Although it didn’t have political ads, the unit benefitted from higher ad rates — partly due to an uptick in ratings for news and sports — and lower programming costs. The company says that scatter prices are 25% ahead of the upfront market. At the theme parks, attendance was up 1% but spending was up 9% due to price increases. That led to a revenue increase of 11% to $3.13B with operating income rising 33% to $421M. The company says that consumer spending was up — especially new guest offerings at Disney California Adventure and at the Disney Cruise Line,although sales were down at the Disney Vacation Club. The studio had mixed results with revenues down 8% to $1.46B and operating income up 13% to $117M. Home entertainment sales were down andCars 2 was no match for last year’s Toy Story 3 — but last year’s results included a $100M writedown from the closing of Robert Zemeckis’film studio in Northern California.