Earnings report: Disney parks help spur revenue, income

The Walt Disney Co.s quarterly report for its fiscal second-quarter 2006 chalked up a 3% increase in revenue at $8 billion over the same period in 2005, and a 12% increase in net income to $733 million.

Disneys top performing division was the media networks unit, which chalked up an 18% revenue growth for the quarter to $3.6 billion and a 20% increase in operating income to $969 million. The parks and resorts unit came in second place with a 7% increase in revenue to $2.3 billion and a 17% increase in operating income $214 million.

The performance of the top two departments offset the declines in both the studio entertainment division, which dropped 22% to $1.8 billion, and the consumer products division, which dropped 3% to $451 million. 

The parks and resorts division attributed its strong showing to increased theme park attendance and higher hotel guest spending and occupancy at both domestic parks, as well as success with its 50th anniversary celebration and strong sales for the Disney Vacation club.

However, the shift of the Easter holiday from the second to the third quarter had a negative impact on the quarter.

To contact the reporter who wrote this article, send e-mail to David Cogswell at [email protected].

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