Movies bolster Disney's profits

A strong movie and home video slate and gains in its broadcast and cable networks boosted fourth quarter profits for the Walt Disney Co.

Disney reported net income of US$415 million, or US$0.20 per share, for the quarter ended Sept. 30, compared with US$175 million, or US$0.09 per share, in the same period last year. The results were released Thursday after the close of regular trading.

Revenue increased 5 percent to US$7.01 billion, compared with US$6.66 billion in the same quarter last year.

The results easily beat expectations of analysts surveyed by Thomson First Call, who had been looking for earnings of US$0.15 per share.

Operating income at Disney's movie studio surged to US$205 million from US$75 million in the same quarter last year on a 9 percent rise in revenue to US$2.2 billion.

The quarter included the theatrical release of Pirates of the Caribbean, the Johnny Depp movie based on a Disney theme park ride, as well as the home video release of the Oscar-winning Chicago.

Disney's theme parks continue to be hit by declining tourism due to the war in Iraq and terrorism jitters. Revenue at the theme parks declined 1 percent to US$1.65 billion and operating income fell 4 percent to US$225 million in the quarter.

Full year and quarterly results were hurt by the elimination of royalty fees paid by Disney's Paris-based parks.

Disney is seeing an increase in holiday bookings at its domestic parks, the company said.

"The current pace of attendance for the quarter to date at domestic parks is up about 12 percent, driven by local attendance and domestic tourism," Disney chief financial officer Thomas Staggs said.

For the full year, Disney reported net income of US$1.27 billion, or US$0.62 per share, compared with US$1.24 billion, or US$0.60 per share, for last year. Revenue for the year increased 7 percent to US$27.06 billion, compared to US$25.33 billion last year.

Disney shares fell US$0.11 to close at US$22.68 Thursday on the New York Stock Exchange. They gained US$0.07 in after-hours trading.