Disney profit rises 21% as parks counter ‘john carter’ loss – China Huawei Mobile Hotspot

May 8 (Bloomberg) — Walt Disney Co., the world s largestentertainment company, said second-quarter earnings rose 21percent, beating analysts estimates as theme parks countered thesci-fi film “John Carter” that bombed in theaters. Carol Massarreports on Bloomberg Television’s “Street Smart.” (Source:Bloomberg) .Profit in the theme-park division jumped 53 percent. Investors arealready looking past the $200 million loss on John Carter forclues to the impact this quarter and beyond from therecord-breaking opening of Marvel s The Avengers. The Disneyadventure film took in $207.4 million in its U.S. theatrical debutlast weekend.

We have the ability to leverage what was a very fine film done bythe filmmakers at Marvel into something much bigger, Chairman andChief Executive Officer Robert Iger said on CNBC after results cameout. Sales rose 6.1 percent to $9.63 billion in the period ended March31, beating projections of $9.56 billion. The company had a gain of5 cents a share, reflecting a $184 million noncash credit on itsinvestment in UTV Software Communication Ltd. and $38 million inimpairment costs. Disney rose 1.2 percent to $44.85 in extended trading, exceedingthe all-time closing high of $44.38 set on March 26.

The stockgained 1.1 percent to $44.30 at the close in New York and is up 18percent this year, ranking sixth in the 16- stock S&P 500 MediaIndex. (S5MEDA) Ripple Effect Having something like The Avengers though really goes a longway, Rich Greenfield, an analyst with BTIG Research, said in aninterview before results were announced. These are things thatyou can leverage through the Disney channels. These are things youcan leverage through the parks. Sierra Wireless Router

These are things you can leverageon the broadcast network. Revenue soared 10 percent at the namesake theme parks to $2.9billion, Disney said. Results were driven by gains in the U.S.,Tokyo and Hong Kong. Revenue fell at Disneyland Paris, the companysaid. China Huawei Mobile Hotspot

Growth in the U.S. reflected higher ticket prices andattendance, the company said. Revenue from media networks, including ESPN and ABC, increased 8.6percent, while profit grew 13 percent. The cable networks, principally ESPN, continue to be the growthengines for Disney, said Paul Sweeney, senior analyst atBloomberg Industries. Investors have long wondered how long theESPN growth story can continue. Huawei WiFi Router

There is no evidence in thesenumbers to suggest a slowdown. The film studio recorded a loss of $84 million in the quarter,reflecting failure of John Carter in theaters. Revenue declined12 percent to $1.18 billion, Disney said. Sales in consumer products increased 8 percent, while earningsexpanded 4 percent. The interactive division s loss narrowed to$70 million from $115 million as revenue increased 13 percent,Disney said.


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