Disney restructuring costs drag on quarterly profit

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Disney restructuring costs drag on quarterly profit

Earnings slip to $844 million from $845 million a year earlier. But excluding one-time items, profit of 47 cents a share beats analysts’ average estimate of 38 cents. Revenue rises 1%.

Walt Disney Co., its bottom line dragged down by restructuring costs, reported a modest drop in its fiscal first-quarter profit.

The Burbank entertainment giant reported net income of $844 million, or 44 cents a share, for the quarter ended Jan. 2, compared with earnings of $845 million, or 45 cents, from the same period a year earlier. Revenue rose 1% to $9.7 billion.


Excluding one-time items, earnings of 47 cents a share beat analysts’ average estimate of 38 cents.

The company’s flagship Media Networks group, which includes the ABC broadcast network and cable channels ESPN and Disney Channel, posted an 11% rise in operating income for the quarter to $724 million from $655 million a year earlier. Revenue rose to $4.2 billion from $3.9 billion.

Analysts had been expecting modest first-quarter results for Disney’s television group. However, worldwide growth of the Disney Channel and higher affiliate and advertising fees at ESPN helped drive a 5% gain in operating income for the cable networks, which rose to $544 million for the quarter, up from $517 million a year earlier.

The broadcasting group, which includes ABC and local TV stations, posted a 30% jump in operating income to $180 million, up from $138 million a year earlier. The previous year’s results included a bad-debt charge associated with the bankruptcy of Tribune Co., owner of the Los Angeles Times.

Theme parks reported a 2% drop in operating income to $375 million, from $382 million in the same quarter last year. Revenue remained essentially flat at $2.7 billion. The domestic parks saw a boost in attendance, benefiting in part from a shift of the New Year’s holiday from the fiscal second quarter to the first. But attendance was off at Disneyland Paris.

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Photo Shizuo Kambayashi / Associated Press


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Chip is the owner, editor, and writer of Chip and Company. When he is not writing about Disney News or Planning Tips, you will find him counting down the days to his next Disney Vacation.
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