Walt Disney today reported a higher-than-expected rise in operating earnings despite losses in its Internet operations, while its hit television show Who Wants To Be A Millionaireoffset weaker advertising sales in its ratings-weakened ABC network.
Disney which owns movie studios, the ESPN cable network and several theme parks, reported a profit of $341 million, for the period ended December 31st, compared with $278 million, or 13 cents, a year earlier.
Disney said last week it would shut down its money-losing Internet media network Go.com and dissolve its tracking stock for the Disney Internet Group, converting those shares into common stock as of March 20th.
The company is cutting 400 jobs and will take more than $800 million in second-quarter restructuring charges.
Its film division reported a profit in the quarter after recording a loss in the year-ago period on a 15 per cent increase in revenues. The unit was helped by strong results from the release of Toy Story 2on video and films like Remember The Titansand Unbreakable.
Consumer products earnings fell 13 per cent on a revenue decline of 6 per cent.
Along with other media stocks, Disney has sunk in recent months due to concerns that advertising sales have weakened compared with last year. Shares reached a 52-week low in December, briefly touching $26.
Reuters