Skip to main contentAccess keys help

[an error occurred while processing this directive]
BBC News
watch One-Minute World News
News image
Last Updated: Wednesday, 9 August 2006, 15:47 GMT 16:47 UK
Disney boosted by films and rides
The main characters from The Incredibles
Disney's Pixar produced animated hits like The Incredibles
US entertainment giant Walt Disney has reported a 39% jump in third-quarter profit thanks to a strong performance from its film and theme park divisions.

Net profit for the three months to 1 July hit $1.1bn, up from �811m in the same period of 2005.

Theme park sales rose 11%, boosted by a jump in guest spending and attendance.

Profits were also lifted by two box office hits - the latest Pirates Of The Caribbean film and animated car racing movie Cars.

Cars is the first film to emerge from Disney's $7.4bn (�4.1bn) takeover of Pixar, the animation firm behind films including Toy Story and The Incredibles.

One cloud over the deal is that Pixar could face an investigation over claims that it paid senior executives back-dated stock options that locked in the highest potential profits.

Federal regulators are already investigating more than 80 companies on concerns that they may have manipulated stock option grants.

Job cuts

Last month, Walt Disney announced it was cutting 650 jobs worldwide as part of plans to produce fewer adult-oriented films and concentrate on family blockbusters.

Johnny Depp in Disney's Pirates of the Caribbean: Dead Man's Chest
Films like Pirates of the Caribbean offer lucrative marketing tie-ins

It wants to reduce its film output from about 18 to 12 movies a year, with only two or three from adult-oriented subsidiary Touchstone Pictures.

Touchstone releases do not match Disney films' profits or provide the same marketing tie-ins, the company said.

The profit growth announced by Disney sent its shares higher, and they led the benchmark Dow Jones index after morning trading, rising 3% to $29.85.


SEE ALSO
Disney axes 650 global film jobs
19 Jul 06 |  Entertainment
Pirates pulls off box office coup
17 Jul 06 |  Entertainment
Pirates sails to top of UK chart
11 Jul 06 |  Entertainment
Disney to launch pet food range
08 Jun 06 |  Business
Disney to sell films via the web
31 May 06 |  Business
Disney buys Pixar in $7.4bn deal
24 Jan 06 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

AmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific