Diversified media and entertainment company Walt Disney Co. (DIS) said Thursday after the markets closed that its fourth quarter profit rose 18% from last year, helped mainly by strong results at its cable networks due to growth at ESPN and, to a lesser extent, the worldwide Disney Channels. The company's quarterly earnings per share came in above analysts' expectations as did it quarterly revenue.
The Burbank, California-based company reported net income for the fourth quarter of $895 million or $0.47 per share, compared to $760 million or $0.40 per share for the year-ago quarter.
The latest quarter results included a gain related to the Lifetime/A&E transaction and restructuring and impairment charges, which together resulted in a net benefit of $0.01 per share, while the year-ago quarter results included the Lehman Brothers bad debt charge and an impairment charge, which together had a net adverse impact of $0.04 per share.
Excluding these items, adjusted earnings for the fourth quarter were $0.46 per share, compared to $0.44 per share in the prior year quarter.
On average, 26 analysts polled by Thomson Reuters expected the company to earn $0.41 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Segment operating income for the quarter increased 4% to $1.85 billion from $1.78 billion a year earlier.
Revenue for the fourth quarter increased 4% to $9.87 billion from $9.45 billion in the same quarter last year. Twenty analysts had a consensus revenue estimate of $9.27 billion for the fourth quarter.
Fourth quarter revenue from the company's media network segment increased 14% year-over year to $4.73 billion, while the segment's operating income jumped 26% to $1.49 billion.
Operating income at cable networks for the quarter rose 19% to $1.48 billion. Fourth quarter operating results at Broadcasting improved by $73 million to $2 million, driven by increased domestic and international sales of ABC Studios productions, led by Grey's Anatomy and According to Jim.
Fourth quarter revenue from parks and resorts fell 4% to $2.84 billion, while segment operating income slid 17% to $344 million, reflecting weakness in the company's domestic operations and at Disneyland Paris. Fourth quarter revenue from the company's studio entertainment division increased 3% to $1.5 billion. The division slipped to an operating loss of $13 million in the fourth quarter from year-ago operating income of $98 million.
Consumer Products revenues for the quarter fell 12% to $646 million and the division's operating income dropped 28% to $151 million.
Interactive Media revenues for the quarter increased 8% to $113 million and the division's operating loss narrowed to $114 million from $120 million a year earlier.
For the fiscal year 2009, the company reported net income of $3.3 billion or $1.76 per share, compared to $4.4 billion or $2.28 per share for the fiscal year 2008.
Excluding items, adjusted earnings for the fiscal year 2009 were $1.82 per share, compared to $2.28 per share in the prior fiscal year.
Revenue for the fiscal year 2009 fell 4% to $36.15 billion from $37.84 billion last year.
Analysts expected the company to earn $1.76 per share on revenue of $35.54 billion for the fiscal year 2009.
"Although last year was a difficult one due in part to the weak global economy, I'm pleased with the way our businesses have responded to the downturn," said Disney President and CEO Robert Iger.
The impact of the recession has reduced attendance at Disney theme parks and the company's entertainment operations have been suffering from declining advertising, viewership and DVD sales.
Earlier Thursday, Disney announced that its chief financial officer, Tom Staggs, and the head of its parks and resorts division, Jay Rasulo, will soon swap jobs. Both Rasulo and Staggs are longtime Disney executives.
The company, which is in the midst of an executive overhaul, earlier this month appointed Rich Ross, President of Disney Channels Worldwide, as Chairman of Walt Disney Studios. Ross replaces Richard Cook, who resigned from the company last month.
Media reports also said that Disney's Miramax Films division would eliminate 50 jobs and also reduce the number of movies it produces each year by half. Miramax plans to produce about three movies annually, down from current production of six to eight movies. Disney's plan to eliminate jobs will leave only about 20 people in the division, reports added.
In late August, Disney agreed to buy Marvel Entertainment, Inc. (MVL) in a cash and stock deal valued at about $4 billion. Under the deal, Disney will acquire ownership of more than 5,000 Marvel comic-book characters, including Iron Man, Spider-Man, X-Men and Captain America.
The company achieved a significant milestone early this month, when it received approval from the Chinese government for its theme park in Shanghai. The company had been pursuing the proposal for about 20 years. China is often tough when it comes to approvals for operations of foreign companies in its soil. Time Warner (TWX) and News Corp. (NWS, NWSA) also have been trying hard to make their presence felt in the world's biggest emerging economy, but with little success.
Last week, News Corp. reported an 11% rise in first quarter profit, driven by the theatrical success of Ice Age sequel, and the strong performance of its cable network. Quarterly earnings per share easily surpassed Wall Street expectations, as did its quarterly revenues.
Also last week, Viacom Inc. (VIA , VIA-B) reported third quarter profit that increased 15% from last year, mainly helped by strong sales of Medof Transformers and GI Joe and revenues from its Media Networks. Both earnings and revenues came in well ahead of analysts' estimates.
Disney shares, which have traded in a range of $15.14 to $29.98 over the past year, closed Thursday's regular trading session at $29.05, down 24 cents. The stock is currently gaining 54 cents or 1.86% in after hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.