Disney Earnings Make Incredibles Recovery

13 May 2005

The animated superhero movie, The Incredibles, has flexed its muscles to boost Walt Disney Company profits.

The Mouse House has announced a 30% jump in earnings in the second fiscal quarter, with profits of $698 million (€545.18m; £372.56m). Revenue climbed 9% to $7.8 billion.

The company's resurgence is due in part to DVD sales of the Pixar Studios hit movie and to the recovery of the ABC television network, helped by its ratings-winning drama series, Desperate Housewives.

Last year a 30-second ad spot for the dark tale of folk in Wisteria Lane sold for $125k. This year advertisers are paying $350k or more for the same spot.

Says a cheerful Robert Iger, ceo-in-waiting: "We're on the right path now to continue this trend. That's very good news."

Analysts are also waiting to see if he will successfully re-start negotiations with Pixar over a continuing association with Disney. The present agreement ends next year.

Iger, who takes over the top job from controversial incumbent Michael Eisner on October 1, has also slammed former Disney directors Roy Disney and Stanley Gold over a lawsuit they have filed alleging the search for a new ceo was a sham [WAMN: 11-May-05].

He spits: "I've spent a lot of time with our cast members (employees) ... and I can tell you people are fed up by this. They want to be left alone. They feel enough is enough."

Data sourced from Financial Times Online; additional content by WARC staff