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Disney Rides Hogs to Big Quarter

Wild Hogs and rising ad sales at ABC propel Disney's profit well above expectations. Revenue falls short.
Last Trade:Change:
Primary executive:
Robert A. Iger,
Summary:
The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations … View More

The unexpected success of the movie Wild Hogs and robust ad sales at the ABC network helped the Walt Disney Co.'s profit grow 27 percent in the second quarter.

Net income rose to $931 million, or 44 cents per share, from $733 million, or 37 cents, a year earlier. Sales increased to $8.07 billion from $8.03 billion. Reuters reports that analysts had expected earnings to come in lower, at only 36 cents per share, and revenue to edge a bit higher, to $8.1 billion.

The company’s studio entertainment division recorded a profit of $235 million on revenue of $1.55 billion; a year ago, the studio unit made only $147 million on revenue of $1.77 billion. Wild Hogs, the story of a group of middle-aged men on a road trip with their motorcycles, sold $159 million in tickets.

The broadcasting division, which includes ABC, reported $212 million in profit, up from $160 million a year earlier. But revenue fell to $1.66 billion from $1.78 billion in the same period of 2006, which ABC’s broadcast of the Super Bowl helped to buoy.

Disney’s cable networks generated an operating profit of $963 million, up from $809 million.

Theme parks and resorts boosted operating profit to $254 million, compared with $214 million last year.

Shares of Disney rose 49 cents to $36.55 at the close of trading on Tuesday.


 



 

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