The Walt Disney Company earnings were flat in its first fiscal quarter, compared with last year.
- Net income in Q1 was $844 million or 44 cents per share, down from $845 million or 45 cents a share last year.
- DIS was expected to post an EPS of $0.39 on revenues of $9.63 billion. For Q109, DIS reported an EPS of $0.41, and revs of $9.6 billion.
- Cable Networks revenue was $2.65 billion.
- Broadcasting revenue was $1.52 bilion.
- Interactive Media revenue was $221 million. They released fewer video games in the quarter, so revenue was lower than they expected, they said.
- Operating income at Cable Networks increased $27 million to $544 million.
- The increase at the worldwide Disney Channels was driven by higher affiliate revenue due to subscriber growth internationally and higher contractual rates domestically.
- The increase at ESPN was due to higher affiliate and advertising revenue, partially offset by higher programming and production costs.
- Decreased equity income was driven by increased programming and restructuring costs, partially offset by higher advertising and affiliate revenue at A&E Television Networks (AETN) which now includes the Lifetime networks. Restructuring charges at AETN were primarily for severance costs as a result of the combination of AETN and Lifetime in the fourth quarter of fiscal 2009.
- Operating income at Broadcasting increased $42 million to $180 million for the quarter primarily due to the absence of a bad debt charge in connection with the bankruptcy of a syndication customer in the prior-year quarter and higher revenues from ABC Studios productions driven by increased third party network licence fees and international sales of Criminal Minds.
- At the ABC Television Network, results reflected lower primetime ratings and advertising rates, partially offset by a shift from political news coverage in primetime in the prior-year quarter to entertainment programming in the current quarter. At the owned television stations, results reflected lower advertising revenue due to higher political advertising sales in the prior-year quarter.
“We are pleased with our first quarter results and are excited about our creative pipeline, from upcoming movies like Alice in Wonderland and Toy Story 3 to new attractions at our Parks and Resorts,” said Robert A. Iger, President and CEO, The Walt Disney Company in the earnings release. “Our unique ability to deliver outstanding experiences to consumers across platforms, markets and businesses gives us a strong competitive advantage and positions us well for long-term growth.”
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