Disney 3Q beats Street

August 2, 2001 Posted: 2056 GMT

NEW YORK (CNNfn) -- Walt Disney Co. posted third-quarter results Thursday that beat expectations but showed drops at its Internet and studio units.

Excluding one-time charges, Burbank, Calif.-based Disney (DIS: down $0.17 to $26.50, Research, Estimates) reported that third quarter net income dropped 3 percent to $479 million or 23 cents a diluted share compared to $495 million, or 23 cents a share for the same time period in 2000. Wall Street analysts had expected a profit of 21 cents per share, according to earnings tracker First Call.

Revenues fell 1 percent to $5.97 billion compared to $6.03 billion a year ago but came in above expectations of $5.88 billion, according to First Call.

Including the charges, Disney reported net income of $392 million or 19 cents a share.

"In a soft economy, Disney's overall performance continues to be solid," said Disney CEO and Chairman Michael Eisner. "Our studio has added yet another quarter to a year of strong growth. At our parks, effective expense-management measures have largely compensated for the weaker attendance that we had anticipated."

Disney shares closed at $26.56 Thursday but rose to $27.38 in after-hours trading on Instinet.

Revenues for Disney's theme parks, which include Walt Disney World, were flat at $1.9 billion. Disney's studio entertainment division, which produced the lackluster Pearl Harbor and Atlantis, reported an 8 percent drop in revenue to $1.3 billion.

Disney, which just inked a $3 billion buy of Fox Family Worldwide, has been rumored to be joining a group to make a bid for  AT&T Broadband. However, the company did not make any mention of such a venture.

The company's media networks division reported a 6 percent revenue drop to $2.1 billion, reflecting declines at its ABC television network and TV/radio stations. Those declines reflect a weak advertising climate, and in a conference call with analysts Thursday afternoon, Disney president Robert Iger said he sees no sign of recovery in that area.

Revenue at the Internet group, which includes Disney.com and ESPN-branded Web sites, also fell 17 percent to $38 million.

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