The Walt Disney Company beat expectations today when it reported an earnings-per-share (EPS) of $.48, representing a 45% increase over 2Q 2009.
Although net income was up across the board, Disney Consumer Products and Interactive Media shone above other business units with an increase of 20% each over the same time period in 2009. DCP, which yielded $596M for the quarter, had its success tributed to both the Disney/Pixar Toy Story and Marvel properties.
The studios also turned in a strong performance for the quarter, mostly due to Tim Burton’s Alice in Wonderland, helping to increase revenues 7% to $1.5B for the quarter, smashing last year’s performance which consisted of films such as Confessions of a Shopoholic and Race to Witch Mountain.
“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.”
Disney Parks and Resorts saw a modest 2% increase to $2.4B as it managed to reduce operational costs. Performance was gauged at being flat both domestically and abroad with individual guest spending increasing due to higher ticket prices while attendance fell. On the international front, successes at Hong Kong Disneyland effectively neutralized the losses at the Disneyland Paris Resort.
ABC’s operating income dropped $39M to $123M due to a combination of higher programming costs, lower ratings and — as a result — a decline in advertising income. Meanwhile ESPN rose the same amount to $1.2B due to higher retransmission costs for cable operators and an increase in subscribers, thanks in part to the addition of an ESPN franchise in the United Kingdom.
Overall, revenue was up 6% for the quarter with a whopping 55% increase in net income of $953M.