But operating income for the ABC properties takes a hit due to increased programming costs and costs of a mobile phone initiative.
Disney’s broadcasting division—the ABC network and TV and radio stations—posted an 8% year-over-year growth to $1.6 billion in the second quarter of 2006, the company reported this morning.
But operating income for the division plunged 28% from $253 million in the second quarter of 2005 to $183 million in the second quarter this year.
Disney attributed the income decline to higher cost of dramas and pilots at the TV network and new digital initiatives such as its Disney branded mobile phone service.
In a conference call with securities analysts this morning, Disney CFO Tom Staggs said that the network enjoyed 3-4% growth in CPM rates—the best of any network— in the upfront advertising market for the 2006-07 TV season with total sales of $2.3 billion.
Percentage growth in the quarter over last year for the ABC TV stations was in the “mid single digits,” Staggs said.
The second quarter is Disney’s fiscal third quarter ending July 1, 2006.
Overall, the corporation reported a 12% year-over-year increase in revenue in the second quarter. Earnings per share for the quarter rose 36% to 53 cents, compared to 39 cents in the quarter last year.