The Walt Disney Company (NYSE: DIS) today reported earnings for its
fiscal year and fourth quarter ended September 29, 2012.
Diluted
earnings per share (EPS) for the year increased 24% to $3.13 from $2.52
in the prior year. For the quarter, diluted EPS was $0.68 compared to
$0.58 in the prior-year quarter. Excluding certain items affecting
comparability as detailed below, EPS for the year increased 21% to $3.07
from $2.54 in the prior year and EPS for the quarter increased 15% to
$0.68 from $0.59 in the prior-year quarter.
"Fiscal 2012 was a great year creatively, financially and strategically,
resulting in record revenue, net income, and earnings per share," said
Disney Chairman and CEO Robert A. Iger. "The addition of Lucasfilm will
further fuel Disney's creative engine across our company to create
additional value for our shareholders and we're confident the Company is
well positioned to continue our strong performance and growth."
EPS for the current year includes a $184 million non-cash gain recorded
in connection with the acquisition of a controlling interest in UTV
Software Communication Limited (UTV) and a $79 million recovery of a
receivable from Lehman Brothers (Lehman) that was written off in 2008 as
a result of the Lehman bankruptcy, partially offset by $100 million of
restructuring and impairment charges and a $24 million net charge
related to the refinancing of Disneyland Paris borrowings (DLP debt
charge). These items benefitted EPS by $0.06. The UTV gain, the Lehman
recovery and the DLP debt charge were recorded in "Other
income/(expense), net" in the Consolidated Statement of Income. EPS for
the prior year included $75 million of gains from the sales of Miramax
and BASS and $55 million of restructuring and impairment charges. These
items had a negative impact on EPS of $0.02.
EPS for the current quarter includes the Lehman recovery ($79 million),
restructuring and impairment charges ($49 million) and the DLP debt
charge ($24 million). Collectively, these items had no net impact on
EPS. EPS for the prior-year quarter included restructuring and
impairment charges of $9 million which had a negative impact on EPS of
$0.01.
Cable Networks
Operating income at Cable Networks increased $471 million to $5.7
billion for the year due to growth at ESPN and the worldwide Disney
Channels and an increase in equity income. The increase at ESPN was
driven by higher affiliate and advertising revenue, partially offset by
higher programming costs. Higher affiliate revenue was due to
contractual rate increases while the increase in advertising revenue was
primarily due to higher rates. The programming cost increase was driven
by contractual rate increases for college sports, NFL, Major League
Baseball, and NBA programming and expanded rights for the Wimbledon
Championships. Growth at the worldwide Disney Channels was driven by
higher affiliate revenue due to contractual rate increases domestically
and subscriber growth internationally. These increases were partially
offset by lower Disney Channel program sales. Increased equity income
was driven by growth at A & E Television Networks (AETN), which
reflected higher advertising and affiliate revenues partially offset by
higher programming costs.
For the quarter, operating income at Cable Networks increased by $118
million to $1.4 billion due to growth at ESPN, higher equity income at
