The Orange County Register
August 4, 2000
BURBANK, Calif.--The Walt Disney Co. had higher-than-expected third quarter profits due to higher attendance at
its theme parks and ad sales at ABC.
Net income, including Disney's interest in Go.com Inc. and related amortization, rose 79 percent to $440 million,
or 21 cents a share, from $246 million, or 12 cents, during the same quarter last year.
Disney prefers to report its profits excluding Go.com, which is traded separately. Disney's net income without
Go.com rose to $633 million, or 30 cents a share, from $427 million, or 20 cents a share.
The earnings suggest Disney Chairman Michael Eisner has had some success in trying to turn around Disney's profits,
which had gone into a slump about three years ago and began depressing the stock.
Analysts expected Disney to earn 14 cents a share, including its interest in Go.com, according to First Call/Thomson
Financial. Eisner said the good earnings partly were due to increases in theme park attendance and hotel occupancy.
Disney executives also talked about the company's new Fast Pass, which allows guests to ride the rides at a time
specified by computer. Guests apparently spend more money on food and Disney products because they're spending
less time in line.
Revenue rose 9 percent to $5.96 billion, partly because of increased advertising revenues at Disney's networks.
The consumer products division continues to report declining results because of lower worldwide licensing revenue
and higher costs. Operating profit fell 48 percent to $59 million.
Disney shares rose $2.38 to close at $42.50. In the past six months, Disney stock has risen 8 percent, compared
with an 11 percent decline in Time Warner, the biggest media company in the world, and an 11 percent decline in
America Online Inc., which is buying Time Warner. Viacom Inc.'s widely traded Class B shares rose 21 percent in
that period.
Among Eisner's moves that are making a difference, the company is trimming production at the film studio, redesigning
its Disney Stores and their mix of merchandise sold, revamping its home-video release strategy and continuing to
expand the theme parks.
Go.com will change its name to the Walt Disney Internet Group next week.
Staff writer Danielle Herubin also contributed to this report.
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