Disney: Film Studio Retreats; Tv Saves Day
Although profits from Disney's film division plunged 39 percent and revenue, 22 percent, income from ABC, ESPN, and Disney theme parks more than offset the studio's losses in the second quarter. The media giant reported a 12-percent rise in net income to $733 million compared with $657 million during the same quarter a year ago. Total revenue rose 3 percent to $8.03 billion. The company's biggest winner was its long-distressed ABC unit, which, thanks to shows like Desperate Housewives, Grey's Anatomy, and Lost, reported a 28-percent rise in revenue for the quarter. Surprisingly, the high cost of gasoline did not prevent vistors from packing the Disney theme parks, which saw operating income rise 17 percent to $214 million. The results announcement appeared to have little effect on Disney stock.