Disney reported that its fourth-quarter profit doubled, based on the popularity of movies growth at the ABC network and the success of the 50th anniversary celebration at its theme parks worldwide.
November 11, 2006 (Press Release) --
The Walt Disney Company reported on Wednesday that its fourth-quarter profit doubled, based on the popularity of movies like “Pirates of The Caribbean: Dead Man’s Chest,” growth at the ABC network and the success of the 50th anniversary celebration at its theme parks worldwide.
The numbers are particularly good news for Robert A. Iger, who was named Disney’s chief executive more than a year ago, when Michael D. Eisner stepped down after investors revolted over the company’s stock performance. Since becoming chief executive, Mr. Iger has sought to delegate business decisions to his top lieutenants and expand the Disney brand by exploiting new technology.
The company also said it planned to revamp its Disney.com Web site and to expand its video game business.
Disney said net income in the fourth quarter, which ended Sept. 30, grew to $782 million, or 36 cents a share, from $379 million, or 19 cents a share, in the period a year earlier. Revenue rose 14 percent, to $8.7 billion.
For the year, net income rose 33 percent, to $3.37 billion, up from $2.53 billion in 2005.
In a conference call with analysts, Mr. Iger discussed some of the company’s newest initiatives. In particular, Disney has embarked on a companywide effort to reinvent the Disney.com Web site, which many in the industry say lags behind its peers in its look, style and user-friendliness.
The project to improve Disney .com — which is the online presence of the theme parks, the mobile unit and some games — began in the middle of this year. Mr. Iger said the new site, to be started after the first of the year, will support new media and be easy to customize.
Some divisions within Disney, including ESPN and the ABC network, have been quicker to seize on the marketing advantages of Web site branding than their peers at Disney.com, analysts have said. Mr. Iger said that so far, there have been 19 million requests to view shows like “Desperate Housewives” and “Lost” on ABC.com.
Mr. Iger also said that Disney expected to take advantage of consumers’ interest in Disney music and video games. The company will spend $350 million over the next five years to develop Disney’s video game business, said the chief financial officer, Tom Staggs. Development spending in games will increase 30 percent next year, he added.
On the music side, Mr. Iger said that Disney Channel hits like “High School Musical” and “Hannah Montana,” a serial about a school girl/rock star, could be exploited by several divisions, including Radio Disney and ABC.com.
Author: LAURA M. HOLSON
Source: http://www.nytimes.com/
The numbers are particularly good news for Robert A. Iger, who was named Disney’s chief executive more than a year ago, when Michael D. Eisner stepped down after investors revolted over the company’s stock performance. Since becoming chief executive, Mr. Iger has sought to delegate business decisions to his top lieutenants and expand the Disney brand by exploiting new technology.
The company also said it planned to revamp its Disney.com Web site and to expand its video game business.
Disney said net income in the fourth quarter, which ended Sept. 30, grew to $782 million, or 36 cents a share, from $379 million, or 19 cents a share, in the period a year earlier. Revenue rose 14 percent, to $8.7 billion.
For the year, net income rose 33 percent, to $3.37 billion, up from $2.53 billion in 2005.
In a conference call with analysts, Mr. Iger discussed some of the company’s newest initiatives. In particular, Disney has embarked on a companywide effort to reinvent the Disney.com Web site, which many in the industry say lags behind its peers in its look, style and user-friendliness.
The project to improve Disney .com — which is the online presence of the theme parks, the mobile unit and some games — began in the middle of this year. Mr. Iger said the new site, to be started after the first of the year, will support new media and be easy to customize.
Some divisions within Disney, including ESPN and the ABC network, have been quicker to seize on the marketing advantages of Web site branding than their peers at Disney.com, analysts have said. Mr. Iger said that so far, there have been 19 million requests to view shows like “Desperate Housewives” and “Lost” on ABC.com.
Mr. Iger also said that Disney expected to take advantage of consumers’ interest in Disney music and video games. The company will spend $350 million over the next five years to develop Disney’s video game business, said the chief financial officer, Tom Staggs. Development spending in games will increase 30 percent next year, he added.
On the music side, Mr. Iger said that Disney Channel hits like “High School Musical” and “Hannah Montana,” a serial about a school girl/rock star, could be exploited by several divisions, including Radio Disney and ABC.com.
Author: LAURA M. HOLSON
Source: http://www.nytimes.com/
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