Summer Blockbusters Boost Disney
Cars, Pirates of the Carribbean and Chronicles of Narnia on DVD Raise Third Quarter Profits 17%
Aug 10, 2006
(Source: Big Cartoon Database)
This probably comes as cold comfort to former production president Nina Jacobson, now updating her resume between diaper changings: Disney announced Wednesday that their profits are up a staggering 39% for the 3rd quarter.
Mucho profits from Pirates of the Caribbean: Dead Man's Chest, Pixar's Cars, and strong DVD sales of The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, breathed new life into the conglomerate's film division. Profits were up 17% to $1.7 billion.
Disney's net income for the 3rd quarter, which ended July 1, rose to $1.13 billion (53 cents per share), compared to $811 million (39 cents a share) in the same period last year. Revenue rose 12% to $8.62 billion from $7.72 billion in the same period in 2005.
Tom Staggs, Disney's chief financial officer, credited the film studio's strong summer showing for helping the upswing. Cars alone generated $100 million in revenue. However, many executives were disappointed with Cars theatrical showing, believing the animated film could've done better at the box office.
The Pixar flick also cranked up Disney's merch division, which recorded a $445 million revenue, up 6% from last year.
The Mouse House's acquisition of the famed CG studio also reaped 2¢/share tax dividends, since the sale terminated the original distribution agreement Disney had with Pixar.
Not surprisingly, the parks and resorts division recorded the most impressive numbers, leaping 11% to $2.7 billion. Staggs announced that 4th quarter room reservations were up a single percentage over last year
Disney stock jumped in response to the announcement, rising by 23¢ to close at $29.21 per share.
