Disney Q1 net down 6% to $1.38 billion

MUMBAI: The Walt Disney Company?s net profit for the first quarter ended 29 December fell six per cent to $1.38 billion from $1.46 billion in the same quarter of preceding fiscal due to increase in programming costs at ESPN and decline in studio entertainment revenues.

Disney?s revenues grew five per cent to $11.3 billion, up from $10.7 billion in the corresponding quarter.

?After delivering another record year of growth in 2012, we?re off to a solid start in Fiscal 2013,? said The Walt Disney Chairman and CEO Robert A. Iger. ?Our ongoing success is driven by our long-term strategy, the strength of our brands and businesses, and our high quality family entertainment."

Media Networks revenues for the quarter increased 7 per cent to $5.1 billion and segment operating income increased 2 per cent to $1.2 billion.

Operating income at Cable Networks decreased $15 million to $952 million for the quarter due to a decrease at ESPN, partially offset by growth at the domestic Disney Channels, ABC Family and A&E Television Networks (AETN).

The decrease at ESPN was driven by higher programming and production costs, partially offset by higher affiliate revenue.

Operating income at Broadcasting increased $36 million to $262 million driven by increased advertising revenues at the ABC Television Network and owned television stations and higher program sales, partially offset by higher primetime network programming costs.

Parks and Resorts revenues for the quarter increased 7 per cent to $3.4 billion and segment operating income increased 4 per cent to $577 million. Results for the quarter were driven by an increase at our domestic operations, partially offset by a decrease at our international operations.

Studio Entertainment revenues decreased 5 per cent to $1.5 billion and segment operating income decreased 43 per cent to $234 million.

Lower operating income for the quarter was driven by decreases in home entertainment and theatrical distribution, partially offset by an increase in television and subscription video on demand (TV/SVOD) distribution.

Consumer Products revenues increased 7 per cent to $1.0 billion and segment operating income increased 11 per cent to $346 million. Higher operating income was due to increases at Merchandise Licensing and at our retail business.

Interactive revenues for the quarter increased 4 per cent to $291 million and segment operating results improved from a loss of $28 million to income of $9 million. Higher operating results were driven by lower acquisition accounting impacts at our social games business which were adverse in the prior-year quarter and growth at our Japan mobile business from a new licensing agreement for Disney branded mobile phones and content.