The Walt Disney posted a 71 per cent rise in quarterly profit and raised its full-year earnings forecast last night as a strong showing by its theme parks and sports cable network ESPN more than offset problems at its movie studios and ABC television.
The earnings topped the rosiest Wall Street prediction, and embattled Chief Executive Mr Michael Eisner said they showed his plan for growth was working.
Disney shares rose about 2 per cent to $23.43 in after-hours trade from a New York Stock Exchange close of $23.
"The strong earnings we are reporting today provide a further indication of the resurgence that is underway at the Walt Disney" Mr Eisner told a conference call, pointing to gains from the company's theme parks, global DVD sales and
cable networks.
Net profit rose to $537 million or 26 cents per share in the fiscal second quarter ended in March from $314 million or 15 cents per share a year earlier.
Operating income for the parks segment rose 21 percent to $188 million, Disney said. Parks profit margins are still being pressured by high employee costs, but Disney said it expected those pressures to ease and margins to rise and noted
international visitation to parks was rising.
At Disney's media networks - including ESPN, ABC and the Disney channels - operating profit rose 76 per cent to $704 million. Operating income fell 26 per cent to $153 million at the studio and rose 42 percent in the consumer products group, which is still looking to sell or otherwise dispose of the loss-making Disney Stores chain.