BURBANK, Calif., (CelebrityAccess MediaWire) — The Walt Disney Company has reported earnings for its second fiscal quarter and six months ended April 3, 2010 and it proved to be a solid Q2 for the company. Overall, Disney posted a 55% increase in net income from the same period in 2009.
The current quarter included restructuring and impairment charges, a gain on the sale of an investment in a pay television service in Central Europe, and an accounting gain related to the acquisition of the Disney Stores in Japan, which collectively had no net impact on earnings per share, which saw a 45% bump from Q2, 2009. The prior-year quarter included restructuring and impairment charges which had a $0.10 per share impact on EPS.
Operating income at Cable Networks increased $39 million to $1.2 billion for the quarter driven by an increase at ESPN due to higher affiliate revenue and, to a lesser extent, advertising revenue, partially offset by higher programming costs.
Operating income at Broadcasting decreased $39 million to $123 million for the quarter primarily due to decreased primetime and news advertising revenues at the ABC Television Network, higher production cost amortization related to sales of ABC Studios productions and higher primetime programming costs.
Parks and Resorts revenues for the quarter increased 2% to $2.4 billion and segment operating income decreased 12% to $150 million. Results for the quarter were driven by a decrease at Disney Cruise Line due to higher fuel costs and promotional activity.
Studio Entertainment revenues for the quarter increased 7% to $1.5 billion and segment operating income increased $210 million to $223 million. Higher operating income was primarily due to an increase in worldwide theatrical distribution.
"The incredible box office performance of Disney's Alice in Wonderland and acquisition of Marvel, whose Iron Man 2 has grossed $334 million in global box office in its first two weeks, clearly show the benefits of investing in high quality branded content," said Robert A. Iger, President and CEO, The Walt Disney Company. "With the economy showing signs of improvement, we're confident our strategy is the right one to provide consumers the best in entertainment while building long-term value for our shareholders." – CelebrityAccess Staff Writers