Walt Disney has reported a quick rise in profits thanks to increased advertising revenue and the popularity of its theme parks. Net profit for the final three months of last year came in at $1.3billion , up more than 50% compared with the $844million the company made a year earlier. Revenue rose by 10% to $10.7billion.
Disney shares rose 3% in after-hours trading following the announcement. The company reported strong results across most of its major business divisions. Revenue at Disney’s media networks, which include ABC and ESPN, rose 11% to $4.6billion, while operating profit rose by almost a half to $1.1billion. The group’s parks and resorts pulled in $2.9billion in revenue, with operating profits hitting $468million.
The Japan earthquake forced the temporary closure of Disney’s Tokyo theme park and its trade stores in the country while the utterly unsatisfactory release of Mars Needs Moms provided a $90million blow to the group’s operating profit.
Higher advertising sales and revenue from distributors at Disney’s media networks meant operating income at the cable group, which includes its ESPN sports channel, rose $174million to $1.4billion. Disney’s interactive unit sustained to struggle in the quarter: The division has failed to break even in spite of major investment.