Walt Disney Releases Q1 Earnings

The Walt Disney Company reported its financial results for the first quarter of the new financial year, a three-month period ending December 31, 2005. Overall, the company saw a revenue improvement of 2% over Q1 2005, taking in $8.6 billion, but lower profit. Operating income went down 1% from 2005's $1.37 billion, landing at $1.36 billion, and net income fell 7% from $734 million in 2004 to $686 million in Q1 2006. The company's chief revenue sources are its media networks, parks and resorts, and studio entertainment, but "consumer products" also figure into the overall company picture, including its video game branch Buena Vista Games. Consumer Products revenue increased 1%, partially due to growth in BVG, and operating income for the division increased 17% to $270 million. The video game growth was due to the release of games based on Disney properties such as The Chronicles of Narnia: The Lion, the Witch, and the Wardrobe, Chicken Little, and Tim Burton's The Nightmare Before Christmas. "I am encouraged by the solid momentum in our earnings and the financial and creative strengths that underpin these results," said Disney president and CEO Robert Iger. "We continue to focus on our strategy of creating the finest content, embracing leading edge technologies, and strengthening our global presence and in doing so, we are confident in our ability to deliver long-term success across each of our businesses."