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Walt Disney Co. Revenues Rise

Aug 9, 2006  •  Post A Comment

The Walt Disney Co. saw its revenues grow in all four of its divisions for the quarter ended July 1, with the company’s combined revenues growing 12 percent from the same quarter last year.

In its largest division, media networks, Walt Disney’s revenues hit $3.7 billion, up 10 percent from the $3.4 billion in the same quarter in 2005. Operating income in the division was up 5 percent from last year to $1.2 billion.

Among its cable networks, Walt Disney increased its operating income 15 percent to $969 million, primarily from affiliate revenues and contractual rate increases for sports cabler ESPN. Revenues were up 12 percent to $2.1 billion.

At the broadcasting division it was a different story. Operating income was off 28 percent for the quarter to $183 million, which The Walt Disney Co. chalked up to higher programming expenses at ABC that offset increased ad revenue. Revenues grew 8 percent to $1.6 billion.

Besides reporting a one-time net gain in connection with its acquisition of animation studio Pixar, the company announced Wednesday it is selling its half stake in the magazine US Weekly to Wenner Media.