Disney Reports show strong earnings last quarter

[daguru]

Disney reports another strong quarter
Scott Powers | Sentinel Staff Writer
4:35 PM EDT, July 30, 2008

The Walt Disney Co. reported another strong three-month financial performance Wednesday, this time for the third quarter of its 2008 fiscal year, with earnings of 66 cents a share.

Disney's quarterly earnings included a one-time, 4-cent gain related to the company's re-aquisition of the Disney Stores retail chain in North America. However, even without that bonus, the earnings outpaced the 57 cents a share that Disney offered during the same quarter last year and the 61 cents that analysts had been expecting, according to a survey conducted by Thomson Reuters.

Disney's fiscal third quarter, which ended June 28, generated $9.24 billion in revenue and a profit of $1.28 billion. Both were up from the $9.05 billion in revenue and $1.18 billion in profit that Disney posted during the same quarter in 2007.

"We've had another solid quarter at the Walt Disney Company, further illustrating our creative momentum, the competitive strength of our brands and our ability to cohesively manage a great collection of assets to maximize shareholder value," Robert A. Iger, president and chief executive officer, stated in a news release.

Revenue and operating income were down at the company's studio-entertainment division compared with the third quarter of 2007. But the company's other three divisions all posted higher revenue. The parks-and-resorts division, which includes Walt Disney World, posted a 5 percent increase in revenue to $3.04 billion, compared with the third quarter of 2007. The division's net operating income was $641 million, up 3 percent compared with the same period last year.

The company attributed the parks-and-resorts division's growth primarily to an increase in business at Disneyland Resort Paris, driven by favorable currency-exchange rates and higher guest spending and attendance.

Results at both Disney World and Disneyland in California reflected a decrease in attendance from the same quarter a year ago, which the company said was due to the shift of the Easter holiday from the third quarter in 2007 to the second quarter in 2008. The loss of the busy holiday period was more than offset, however, by increases in corporate-alliance income and guest spending at Disney World, driven in part by higher average ticket prices, the company reported.

Source: Orlando Sentinel; http://www.orlandosentinel.com/orl-bk-disney-earnings-073008,0,7197327.story

Gee and they are getting ready to up the entrance fees again... hmmm...
_________________
Up or Down North, South, East, or West An Adventurer's Life is Best!

[WDWFan]

I am surprised by the line in there about a profit from buying back the Disney Stores. Usually an acquisition would be an expense on the books, not a revenue. Glad to here they had a good 3rd quarter. At least on behalf of the folks who are working there.

Now... will it all be shared out to the shareholders or will it be re-invested in the parks...

[onecutemoose]

I've read some really mixed stuff on this...all continues to say Disney is a "buy" but a lot of little things have been pointed out...including the fact that foreign tourists coming to the States due to the weak dollar may not really be happening as much as predicted.

I also wonder if there has been an increase in AP sales--like the SoCal etc. and if the answer is yes, how this impacts overall ticket sales? If one frequents the Parks...it is a better deal to use the AP. (now, I do not want the price of my AP to go up...I'm just sayin')

: )

[CTKnight3]

Whew, They made a profit. Now they can raise the tickets some more and.....make even more money?

[daguru]

Don't forget about cutting the Entertainment budget @ WDW also...
_________________
Up or Down North, South, East, or West An Adventurer's Life is Best!