Printed from : The Leisure Media Co Ltd

11 Aug 2010


Disney profits up despite mixed park results
BY Tom Walker

Disney profits up despite mixed park results

Disney Parks and Resorts has reported a 3 per cent increase in revenues for the three months to 3 July.

The increase was offset by falls in attendance and hotel occupancy, resulting in the park division experiencing an 8 per cent fall in operating income.

The mixed results at its parks did not dampen the entertainment giant's third quarter results, however.

It announced a 40 per cent jump in overall profit thanks to its media networks seeing a 43 per cent increase in income - fuelled by the success of hit movies such as Toy Story 3 and Alice in Wonderland.

The group's net profit rose to $1.3bn (£820m), from $954m a year ago. Revenues rose 16 per cent to US$10bn.

Disney's president and chief executive officer, Robert A. Iger, said: "We're very pleased with our strong third quarter, in which we grew revenues substantially and improved profitability across the majority of our businesses.

"Our performance underscores the value of sticking to a smart strategy even in tough times, of investing in the right people, and of focusing relentlessly on quality and innovation to drive growth in shareholder value."

In a move that was seen as a sign that the sector was recovering, Disney last week increased the price of annual passes to Walt Disney World by US$10, while Magic Your Way and Park Hopper Tickets are also going up.

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