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Disney 3Q net income nearly flat, revenue climbs

Disney 3Q net income nearly flat, revenue climbs

August 6th, 2013 in News

BURBANK, Calif. (AP) - Earnings at The Walt Disney Co. were nearly unchanged in the latest quarter, while revenue increased 4 percent thanks to a boost from Disney's theme parks and resorts business and cable networks such as ESPN.

Disney said Tuesday that it earned $1.85 billion, or $1.01 per share, in the fiscal third quarter, which ended June 29. That compares with $1.83 billion, or $1.01 per share, a year earlier. Excluding one-time items, earnings were $1.03 per share in the latest quarter, surpassing Wall Street's expectations.

Revenue was $11.6 billion, up from $11.1 billion.

Analysts polled by FactSet had expected adjusted earnings of $1.01 per share on revenue of $11.7 billion.

Revenue at Disney's parks and resorts business grew 7 percent to $3.7 billion.

Cable networks revenue grew 8 percent to $3.9 billion, thanks to growth at ESPN, A&E and U.S. Disney channels. Broadcast revenue, meanwhile, was unchanged at nearly $1.5 billion. Overall, the media networks business grew 5 percent to $5.4 billion.

Movie studio revenue fell 2 percent to $1.6 billion. Disney said results suffered from marketing costs for "The Lone Ranger" and the slower performance of "Iron Man 3" compared with "The Avengers" a year earlier.

Nonetheless, CEO Bob Iger said that Disney's acquisition of Marvel "continues to drive real value" for the company. Marvel is behind both "Iron Man" and "The Avengers," along with upcoming movies such as "Thor: The Dark World."

Disney said the Pixar movie "Monsters University" was outperforming "Brave" in the year-ago period. In a conference call with analysts, Iger said "Monsters" was "the latest in Pixar's unbroken string of hits."

On the other hand, Disney said it expects to incur a loss of $160 million to $190 million on "The Lone Ranger" in the current, fiscal fourth quarter.

Shares of the Burbank, Calif.-based company fell $1.05, or nearly 1.6 percent, to $66 in after-hours trading, after the release of results. The stock had closed up $1.03 at $67.05.