Disney Works Its Magic This Quarter

Disney [[dis]] managed to work its magic for investors this quarter. Even with the writers’ strike, it managed to increase net profit by 22% on earnings of $1.13 billion, or 58 cents per share, compared with $931 million, or 44 cents per share, last year. Revenue also increased 10% to $8.71 billion. This beat analysts’ expectations of 51 cents per share and revenue of $8.47 billion.

Revenue from Disney’s media networks grew 5% despite the writers’ strike on strong international sales of its TV shows. The strike also helped raise prices of spot ads which are helping its ABC channel bring in more revenue now that the strike has ended and ratings have returned. The lower dollar also helped boost visitors at Disney’s parks and resorts where revenue grew 11% to $2.73 billion. Although US attendance grew by only 5%, parks in Paris and Hong Kong experienced much stronger attendance growth. It also experienced an 18% growth in its studio revenue as it managed to snare some box office hits like “National Treasure 2: Book of Secrets” and “Hannah Montana/Miley Cyrus: Best of Both Worlds.”

On the subject of entertainment, Take-Two Interactive Software [[ttwo]] reported it has sold $500 million worth of Grand Theft Auto IV in its first week of sales. This is a record in first week sales of a video game and should help boost Take Two’s negotiating position in the takeover offer from Electronic Arts.

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