 Michael Eisner says Disney's business is strong |
Walt Disney has delivered a better than expected 5% rise in quarterly profits thanks to improved TV ratings and a strong showing from its theme parks. The media and entertainment giant saw pre-tax pre-exceptional profits reach $723m (�383m) in the three months to December, against $688m a year ago.
Disney said ratings had recovered at its ABC television network while cable sports channel ESPN performed well.
The company said it expected to achieve double digit earnings growth this year.
Fundamentally strong
Disney's first quarter performance exceeded market expectations as its revenues increased from $8.5bn a year ago to $8.7bn.
Operating profit from broadcast businesses including ABC and ESPN rose 36% to $467m while income from theme parks including Disney World grew 11% to $258m.
However, Disney's movie business - including Touchstone Pictures and Miramax Films - fared less well, profits falling 27% to $333m.
Chief executive Michael Eisner described the overall figures as "gratifying".
"We remain confident in achieving double digit earnings growth in 2005, thanks in part to the resurgence in ratings at ABC, the outstanding performance of ESPN and the recovery at our theme parks, which exemplify the strong and broad-based fundamentals of our company," he said.
Disney shares rose in electronic trading after Monday's market close.
"I think that the upside came most particularly from the cable networks, and theme parks were not as compressed from weather-related factors as we thought they might be," said Jeff Logsdon, an analyst with Harris Nesbitt.
One-Minute World News 
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