Alice in Wonderland boosts Disney

Film stars in Q2 results, as consumer products rises by 20 per cent helped by Toy Story.
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The Walt Disney Company has reported its financial results for the second quarter and six months ending April 3rd 2010.

For the three-month period, the firm had net income of $953 million, a 55 per cent rise from $613 million in the prior year. Revenue grew by six per cent to reach $8.6 billion.

The studio division was boosted by the release of Tim Burton's Alice in Wonderland, with operating income for Q2 of $223 million from $13 million a year ago.

Meanwhile, the consumer products arm saw revenues for the quarter rise by 20 per cent to $596 million, with segment operating income up 37 per cent to $133 million.

The increase in segment operating income reflected the growth at merchandise licensing, an increase in publishing driven by Marvel titles and the improvement of Disney's retail business, driven by higher comparable store sales at the Disney Stores North America.

The rise in merchandise licensing was driven by higher earned revenue led by the strong performance of Toy Story and Marvel merchandise, partially offset by amortisation of Marvel acquisition intangible assets.

"The incredible box office performance of Disney's Alice in Wonderland and acquisition of Marvel, whose Iron Man 2 has grossed $334 million in global box office in its first two weeks, clearly show the benefits of investing in high quality branded content," said Robert Iger, president and CEO of The Walt Disney Company.

"With the economy showing signs of improvement, we're confident our strategy is the right one to provide consumers the best in entertainment, while building long-term value for our shareholders."


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