Walt Disney Productions Posts Record Earnings

Walt Disney Productions, citing a marked turnaround in its filmed entertainment unit, reported that earnings and revenue for the year’s second quarter and first half were the highest in its history.

For the three months ended March 31, the company earned $35 million, an increase of 11.8% from the $31.1 million it earned a year ago.

Revenue rose by 11% to $451.5 million from $407.3 million a year earlier.

For the first half of its fiscal year, Disney earned $67.2 million on revenue of $878 million. That was up by about 67% from a year ago, when it earned $40.3 million on revenue of $709.5 million.

However, an accounting adjustment for the first six months of last year added $76.1 million in previously deferred tax credits, giving Disney a net profit for that period of $116.4 million.

Disney Chairman Michael Eisner attributed the improvement in earnings and revenue to a “dramatic turnaround in the filmed entertainment segment.”

He cited the 2-year-old Disney Channel’s first profits after heavy initial losses, higher home-video sales and rentals and the company’s re-entry into the pay-TV market.

In addition, the company had improved earnings from its Arvida land development subsidiary and its theme parks.