BURBANK (dpa-AFX) - Diversified media and entertainment conglomerate Walt Disney Co. (DIS) said Tuesday after the markets closed that its third quarter profit rose 11% from last year, as improved results at its media networks, parks and resorts and consumer products divisions more than offset continued weak results at its studio entertainment and interactive media divisions. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue.
The Burbank, California-based company reported net income for the third quarter of $1.48 billion or $0.77 per share, compared to $1.33 billion or $0.67 per share for the year-ago quarter.
Excluding restructuring and impairment charges of $34 million mainly at Studio Entertainment, earnings per share for the latest quarter was $0.78.
On average, 25 analysts polled by Thomson Reuters expected the company to earn $0.73 per share for the third quarter. Analysts' estimates typically exclude special items.
Segment operating income for the quarter grew 8% to $2.73 billion from $2.54 billion a year earlier.
Revenue for the third quarter rose 7% to $10.68 billion from $10.00 billion in the same quarter last year. Twenty-three analysts had a consensus revenue estimate of $10.45 billion for the third quarter.
'Our third quarter demonstrates the continued strength of our Media Networks, including ESPN, Parks and Resorts and Consumer Products,' said Robert Iger, Walt Disney President and CEO. 'In these turbulent times, our company and its array of strong brands are well-positioned to deliver long-term shareholder value.'
Third quarter revenue from the company's media network segment, which includes cable network ESPN and broadcaster ABC, rose 5% year-over year to $4.95 billion, while the segment's operating income for the quarter surged 11% to $2.09 billion.
Operating income at Cable Networks rose 10% to $1.84 billion in the second quarter due to growth at ESPN, ABC Family and the Disney Channels. Operating income at Broadcasting jumped 20% to $250 million, driven by lower programming and production costs and higher advertising revenue at the ABC Television Network.
Revenue from the company's studio entertainment division declined 1% to $1.62 billion in the third quarter, and the division's operating income for the quarter dropped 60% to $49 million mainly lower worldwide theatrical results that reflected the strong performance of Toy Story 3 and Iron Man 2 in the prior year compared to Cars 2 and Thor in the current year.
Third quarter revenue from parks and resorts grew 12% to $3.17 billion, while segment operating income increased 9% to $519 million, driven by growths at the company's domestic parks and resorts, Disney Cruise Line, and Hong Kong Disneyland Resort, partially offset by decreases at Disneyland Paris and Tokyo Disney Resort, which was impacted by the March earthquake.
Consumer Products revenues for the quarter increased 13% to $685 million and segment operating income jumped 32% to $155 million, driven by an increase at Merchandise Licensing.
Interactive Media revenues for the quarter increased 27% to $251 million, while the division's operating loss widened to $86 million from $65 million last year.
Among others in the industry, Time Warner Inc. (TWX) last week reported a 13.5% rise in second quarter profit, reflecting revenue growth across operating segments. Adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also reaffirmed its its adjusted earnings growth forecast for the full year 2011.
Also last week, Viacom Inc. (VIA) reported a 37% jump in third quarter profit, as advertising revenues jumped at its cable networks.
Disney shares, which have traded in a range of $31.38 to $44.34 over the past year, closed Tuesday's regular trading session at $34.70, up $1.67 or 6%. The stock is currently losing 40 cents or 1.15% in after hours trading.
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