Advertising revenue boosts Disney profits

Walt Disney Concert Hall

Walt Disney Concert Hall

The spurt in advertising revenue and strong demand for its theme parks have helped US entertainment giant Walt Disney report strong profits in Q4, 2010.

The company reported a net profit of $1.3 billion (£810 million) for the fourth quarter, a growth of 54% compared to $844 million reported a year earlier. Revenue for the quarter jumped by 10% and was reported at $10.7 billion.

Commending the company’s performance, Disney chief Robert Iger said: “It’s a great start to a new fiscal year”.

Most major business divisions of the company recorded strong growth in revenue and profits.

Disney media networks division showed the highest growth in profits with operating profit growing by nearly 50% to $1.1 billion on revenues of $4.6 billion. The division – which owns ABC networks and ESPN, saw its topline grow by 11% in the quarter.

Operating profits from its theme parks and resorts rose to $468 million and total revenue was recorded at $2.9 billion.

Thanks to its blockbuster movie Toy Story 3, profits from the movie studio division were up by more than 50% to $375 million, though revenue remained flat.

The only laggard was the group’s interactive media division which posted a loss of $13 million.

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