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The Disneyland Report > Disney News > Successful Investing: Mixed bag at Disney, with weakness in films and TV Disney NewsSuccessful Investing: Mixed bag at Disney, with weakness in films & TVAndrew Leckey Q.I always buy my young nieces shares of Walt Disney Co. for their birthdays. What is the company's outlook? P.S., via the Internet A. Walt Disney World theme park near Orlando closed only briefly when Hurricane Charley passed through Florida. That was a positive for the company, since the park's strong earnings are a big reason behind a 20 percent earnings increase in its most recent quarter. Attendance dropped after the Sept. 11 terrorist attacks, but it has been improving. A worldwide effort to promote the 50th anniversary of Disneyland in California should be a boost in the coming year. Cable is prospering. Gains in revenue at ESPN and the Disney Channel, plus increased advertis ing at ESPN and the ABC Family channel, increased the media-networks group operating income by 15 percent in the quarter. Disney owns a valuable library of films, TV shows and characters. While Disney (DIS) shares are down 6 percent this year after last year's 44 percent gain, the firm is considering an increase in its dividend. DVD sales are strong, but the movie flops "The Alamo" and
"Around the World in 80 Days" took a bite out of studio-entertainment
operations. There are high hopes for "Princess Diaries 2." The Miramax Films unit recently laid off 13 percent of its work force, and there has been discussion about Harvey Weinstein leaving Disney, while brother Bob would stay to run its Dimension label. The ABC network continues to sputter. In addition, dissidents Roy Disney and Stanley Gold, both former board members, still want Chairman and Chief Executive Officer Michael Eisner ousted. President and Chief Operating Officer Bob Iger, whose contract expires a year from now, is considered the front-runner to run the company should Eisner step down at some point. To read the rest of this story, click here. Return to Disney News. |
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