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Last Updated: Monday, 6 February 2006, 22:16 GMT
Disney profits beat expectations
Disney characters
A good performance from its resorts boosted Disney's profits
Walt Disney has seen its first quarter profits rise 7%, with increased revenues at its resorts and TV networks off-setting a decline at its film arm.

Beating Wall Street expectations, it made a net profit of $734m (420m) in the three months to 31 December 2005, up from $686m a year earlier.

Quarterly revenue rose to $8.9bn from the $8.7bn seen 12 months previously, the entertainment giant announced.

Disney also says it will merge its ABC Radio arm with Citadel Broadcasting.

The new firm - Citadel Communications - will become the third largest radio group in the US.

Disney will have a 52% majority stake in the business.

Weaker DVD sales

Profits at Disney's theme parks rose 51% in the quarter, helped by the success of a year long promotion to mark the 50th anniversary of the original Disneyland park in Anaheim, Los Angeles.

The main characters from The Incredibles
The Incredibles boosted results for the same period a year earlier

Disney's studio profits fell 60% during the quarter on lower box office results and home video sales compared to the same time last year.

In its first quarter to 31 December, 2004, Disney was boosted by the release of the animated film The Incredibles.

This time around, films such as Chicken Little did not do as well.

Analysts broadly welcomed the results, with Rich Greenfield of Pali Research saying that Disney was "clearly outperforming".

Last month Disney agreed a $7.4bn deal to buy Pixar, the animation firm originally behind The Incredibles and other titles including Toy Story.

Disney's shares rose just under 2% in after-hours electric trading in New York.


SEE ALSO:
Analysts back Disney Pixar tie-up
25 Jan 06 |  Business
Disney buys Pixar in $7.4bn deal
24 Jan 06 |  Business
Spotlight on Disney's new boss
14 Mar 05 |  Business
Movie studio drags Disney lower
17 Nov 05 |  Business
Profits triple at animator Pixar
06 May 05 |  Business


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