BROADCASTING BOOSTS DISNEY 4Q, YEAR PROFIT
FCC indecency fines and other expenses held down operating income at Disney’s broadcasting operations for the fourth quarter ended Sept. 30, but for the year the division posted a 31% increase in operating income to $606 million.
Results were announced Thursday afternoon and for the quarter, broadcasting operating income decreased $19 million to $29 million, the company said, “as improved performance at the ABC Television Network and higher DVD unit sales of Touchstone Television series were more than offset by the increased costs associated with the rollout of Disney branded mobile phone services and the FCC license impairment charge. The improved performance at the ABC Television Network was driven by higher advertising rates, increased spots from programming changes and benefits from replacement programming for Monday Night Football, partially offset by the impact of lower ratings.”
For Disney as a whole, the company posted a fourth quarter revenue increase of 14% and recorded a 7% revenue gain for the full year. Its net income for the quarter rose from $379 million in 2005 to $782 million in this year’s final quarter. Full-year net income was up 33%, from $2.533 billion to $3.374 billion.
“Disney had a spectacular year, posting record revenues, record net income and record cash flow,” said Bob Iger, president and CEO of the Walt Disney Co. “It is a result of the incredible creativity at our company.”