Walt Disney Profit More Than Doubles
Walt Disney Company’s fourth quarter saw profits more than double to $782 million, while full-year profit was up 33 percent to $3.4 billion.
The company delivered full-year revenues of $34.3 billion, a 7 percent gain. For the quarter, revenues were up 14 percent to $8.8 billion.
"Disney had a spectacular year, posting record revenues, record net income, and record cash flow," said Bob Iger, the president and CEO of The Walt Disney Company. "It is a result of the incredible creativity at our company."
At the media networks, full-year revenues rose 11 percent to $14.6 billion, posting an operating income of $3.6 billion, a 12 percent gain. Cable networks posted full year revenues of $8 billion, a 10 percent gain, and income of $3 billion, led by ESPN. Broadcasting revenues were up 12 percent to $6.6 billion, and income rose 31 percent to $606 million. Quarterly revenues for the segment were up 10 percent to $3.7 billion, with operating income up 18 percent to $883 million. Cable networks contributed $2.2 billion in revenues, up 16 percent, delivering a segment income of $854 million, a 22 percent gain. Broadcasting revenues in the quarter were up just 1 percent to $1.5 billion, and segment operating income dropped 40 percent to $29 million. While ratings and ad revenues were up at ABC and DVD sales of Touchstone Television series posted gains, the division saw expenses rise with the roll-out of Disney branded mobile phone services and the FCC license impairment charge.
The studio entertainment segment saw full-year revenues drop 1 percent to $7.5 billion, but operating income soared from $207 million to $729 million. For the quarter, revenues were up 33 percent to $2 billion, and the segment emerged from Q4 2005’s $313 million loss to post a profit of $214 million. Key titles for the division included Pirates of the Caribbean: Dead Man's Chest, The Chronicles of Narnia: The Lion, The Witch and The Wardrobe and Disney/Pixar's Cars.
Consumer products revenues for the year gained 3 percent to $2.2 billion, with profit up 14 percent to $618 million. For the quarter revenues were up 9 percent to $564 million, while operating income was up just 1 percent to $139 million.
Parks and resorts saw fiscal 2006 revenues climb 10 percent, to $9.9 billion, and operating income was up 30 percent to $1.5 billion. Q4 revenues were up 8 percent to $2.5 billion, and operating profit gained 28 percent to $396 million.
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