TV on DVD helps lift Disney fiscal Q4
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The cast and crew of Amazing Grace attended Fox’s Nov. 8 screening of their film in Los Angeles.
At Paramount’s Nov. 4 screening for A Mighty Heart, the film’s star, Angelina Jolie, participated in a Q&A; with film critic Peter Hammond. The event was held on the studio’s lot.
Warner celebrated its DVD premiere A Dennis the Menace Christmas with the cast and crew Nov. 5 at the studio’s lot.
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By Ned Randolph -- Video Business, 11/8/2007
NOV. 8 | Sales of hot TV DVD releases of ABC series Desperate Housewives, Grey’s Anatomy and Lost helped net income for The Walt Disney Co. surged 12% in the company’s fiscal 2007 fourth quarter.
The company reported income at $877 million, or 44¢ a share, compared with $782 million or 36¢ a share in the same period last year.
The media giant said annual income likewise grew to $4.7 billion or $2.25 per share in full fiscal 2007, up from $3.4 billion or $1.64 per share last fiscal year.
Buoyed by the TV DVD sets and ESPN gains, revenue from Disney’s media networks division jumped 14% on the quarter ended Sept. 30 to $4.02 billion and increased 7% on the year to $15.05 billion. Operating income rose 25% to $1.06 billion on the quarter and 23% on the year to $4.28 billion.
Disney-owned TV, film and musical accounted for 33 million downloads at the iTunes Store, "creating more of a direct connection with consumers and more targeted message with advertisers," Disney president and CEO Robert Iger told analysts during an afternoon earnings call.
Chief financial officer Tom Stagg added that he didn't expect the current Writers Guild strike to affect TV operations, unless it lasts for an extended period.
The company’s studio entertainment division was not so prosperous. Revenue fell 24% on the quarter to $1.5 billion, down from $2 billion last year. For the year, revenue as down 1% to nearly $7.5 billion. The division's operating income fell 21% on the quarter to $170 million, primarily due to the decrease in international theatrical distribution in the quarter. For the year, operating income was up 65% to $1.2 billion.
Disney said its movie releases in the quarter could not outperform last year's success of Pirates of the Caribbean: Dead Man's Chest. But overall, the company enjoyed a banner year in fiscal 2008.
“We’ve delivered another year of outstanding financial results, powered by across-the-board creative strength,” Iger said. “We believe our strong brands, combined with high-quality creative content and our ability to promote and distribute that content across multiple businesses and platforms, gives us a unique ability to continue delivering growth and value to our shareholders.”
The company's strong year accounted in part to the company's ability to promote and make money off products across nearly every division, for instance creating theme park rides, Broadway musicals, toys, albums and videogames from a single movie title, Iger said.