Disney Profit Rises 24%, Aided by \'Avengers\' and a Theme Park Expansion

By BROOKS BARNES

LOS ANGELES - Two out-of-the-park home runs - “The Avengers” and a “Cars”-related theme park expansion - sent quarterly profit at the Walt Disney Company soaring by 24 percent, to $1.83 billion.

Disney, with operations ranging from movies to hotels to baby clothes to ESPN, has traditionally been watched as a barometer of consumer confidence. Lately, however, that relationship seems to be out of alignment: Why is Disney surging at a time when the frail economy has people keeping a lid on discretionary spending?

The answer may be that Disney's offerings of late (with a few notable exceptions, like “John Carter”) are of high enough quality to be seen as must-buys.

It can be expensive, for instance, to experience Disney's theme parks. But the company in June unveiled a $1 billion expansion of its California Adventure park in Anaheim, Calif., with the 12-acre Cars Land as a centerpiece. Increased attendanc e at California Adventure helped drive operating income at Disney's parks and resorts unit up 21 percent, to $630 million, in the most recent quarter.

Similarly, “The Avengers” took in over $1.5 billion at the global box office in part because a large number of consumers felt the superhero film was good enough to spend $3 to $5 more per ticket to see in 3-D. For the quarter ended June 30, Walt Disney Studios reported operating income of $313 million, an increase from $49 million a year earlier. The studio would have done even better, Disney said, if not for a decrease in worldwide DVD sales, something all movie companies are facing.

Robert A. Iger, Disney's chief executive and chairman, called the results “phenomenal” in a statement, adding that the totals were “the largest quarterly earnings in the history of our company.” Disney had net income of $1.83 billion, or $1.01 cents a share. That compares with $1.48 billion, or 77 cents a share, in the sam e quarter a year earlier. Analysts had been expecting income of 93 cents a share.

Revenue for the company's fiscal third quarter climbed 4 percent, to $11.09 billion, held down slightly because of a timing shift in the recognition of ESPN-related affiliate fees. At Media Networks, the Disney unit that includes ESPN, ABC and cable channels like ABC Family, operating income rose 2 percent, $2.13 billion.

Brooks Barnes writes about Hollywood with an emphasis on Disney. Follow @brooksbarnesnyt on Twitter.