MUMBAI: US media conglomerate Disney has reported a 12 per cent jump in net income to $1.4 billion for the first quarter ended 31 December as ESPN shows strong subscription growth.

Revenues increased marginally by one per cent to $10.7 billion.

Disney president, CEO Robert A. Iger said, ?We?re off to a good start in this fiscal year executing on our ongoing strategy, deriving greater value from our brands ? Disney, Pixar, Marvel, ESPN and ABC ? in the US and around the globe. We are confident that our commitment to creating and providing exceptional family entertainment on multiple platforms continues to position us to deliver long-term shareholder value.?

Operating income at Cable Networks increased $196 million to $967 million for the quarter due to growth at ESPN and, to a lesser extent, the worldwide Disney Channels. The increase at ESPN was driven by higher affiliate revenue reflecting contractual rate increases and a reduction in revenue deferrals related to annual programme commitments.

During the quarter, ESPN deferred $190 million of revenue compared to $266 million in the prior year quarter. The decrease was due to a change in the provisions related to annual programming commitments in an affiliate contract.

Ad revenues at ESPN were essentially flat as higher rates and units sold were offset by decreased ratings and a shift in the timing of the Rose Bowl, Fiesta Bowl and certain NBA games relative to the fiscal period end. Programming and production costs at ESPN were comparable to the prior-year quarter as the shift in the timing of college bowl and NBA games was offset by higher contractual rates for NFL and college football programming.

Higher operating income at the worldwide Disney Channels was due to increased ad and affiliate revenue, partially offset by higher programming and production costs. Higher advertising revenue was driven by higher units sold and improved rates internationally. Affiliate revenue growth reflected subscriber growth internationally and contractual rate increases domestically.

Operating income at the broadcasting division decreased $69 million to $226 million driven by lower political ad revenues at the television stations and higher marketing costs, partially offset by lower programming and production costs due to the absence of The Oprah Winfrey Show at the owned television stations. The increase in marketing costs was driven by an increase in the number of new series launches at the ABC Television Network.

Ad revenue at the ABC was essentially flat as higher ad rates were offset by decreased ratings and units sold.

Studio Entertainment revenues decreased by 16 per cent to $1.6 billion and segment operating income increased 10 per cent to $413 million. The revenue decline was driven by fewer Disney branded titles in wide theatrical release in the current quarter along with an adverse impact from the timing of title availabilities in television markets and lower DVD volumes. Higher operating income was primarily due to an increase in worldwide theatrical results and lower film cost write-downs, partially offset by decreases in television distribution and worldwide home entertainment results.

Improved worldwide theatrical results reflected the benefit of lower distribution and marketing costs and production cost amortisation which more than offset the revenue decline due to fewer Disney branded films in wide theatrical release. Key titles in the prior-year quarter included ?Tangled? and ?Tron: Legacy? while the current quarter included ?The Muppets?.

Lower results in television distribution were driven by the timing of title availabilities, relative to our fiscal period end, in international markets. The decrease in worldwide home entertainment was primarily due to a decline in unit sales, partially offset by improved net effective pricing driven by a higher Blu-ray sales mix. The decrease in unit sales reflected the strength of ?Toy Story 3?, ?Beauty and the Beast? Platinum Release, ?A Christmas Carol? and ?Sorcerer?s Apprentice? in the prior-year quarter compared to ?Cars 2?, ?The Lion King? Platinum Release, ?Pirates of the Caribbean: On Stranger Tides? and ?The Help? in the current quarter, as well as lower sales of catalogue titles.

Consumer Products operating income of $313 million for the quarter was comparable to the prior-year quarter while revenues increased by three per cent to $948 million. At the retail business, increased revenue was driven by new stores in the US and holiday season promotions. Retail sales were driven by ?Cars? and ?Tangled? merchandise in the current quarter compared to ?Toy Story? in the prior-year quarter. The revenue increase at retail was largely offset by higher operating costs associated with increased volume.

At merchandise licensing, operating income for the quarter was comparable to the prior-year quarter as the strength of ?Cars? merchandise was largely offset by lower performance of ?Toy Story? and ?Tangled? merchandise.

Interactive Media revenues for the quarter decreased 20 per cent to $279 million and segment operating results decreased by $15 million to a loss of $28 million. Lower operating results were driven by a decrease at our console game business partially offset by improved social game results, consistent with our ongoing shift from console games to social and other interactive platforms. Social game results were driven by lower acquisition accounting impacts which were adverse to the prior year quarter and improved title performance in the current quarter.

The decrease at the console game business was primarily due to fewer releases and the strength of Epic Mickey in the prior-year quarter. Titles in the current quarter included Disney Universe while the prior-year quarter included ?Toy Story 3? and ?Tron: Evolution? in addition to Epic Mickey.

Parks and Resorts revenues for the quarter increased by 10 per cent to $3.2 billion and segment operating income increased by 18 per cent to $553 million. Results for the quarter were driven by increases at our domestic parks and resorts and Disney Cruise Line. Higher operating income at the domestic parks and resorts was driven by increased guest spending and attendance, partially offset by increased costs.

MUMBAI: US media conglomerate Disney president, CEO Robert A Iger has named George Bodenheimer as ESPN executive chairman. Also John Skipper is ESPN president, co-chair, Disney Media Networks, effective 1 January, 2012. The moves continue the company‘s focus on ensuring strategic continuity and succession planning.

Bodenheimer is currently ESPN, ABC Sports president and Disney Media Networks co-chair. He will relinquish his day-to-day operating responsibilities on 1 January 2012. As ESPN executive chairman Bodenheimer will continue to chair ESPN‘s board of directors, provide strategic direction and support a seamless transition to Skipper, who will assume day-to-day operating responsibilities on 1 January. Skipper has served as ESPN executive VP, content, since October 2005.

Bodenheimer will continue to report to Iger. Skipper will have a dual report to Iger and Bodenheimer.

Iger said, "George has said repeatedly that ESPN‘s success has been led by its collaborative corporate culture and a deep bench of executive talent. While that remains true, it obviously and intentionally downplays his leadership and many significant contributions. We‘ve focussed on succession at all levels of Disney for some time now, and consistent with that approach, George initiated conversations last spring that led to today‘s announcement.

"With George‘s continued presence, John‘s experience and vision and an executive management team and workforce that are unparalleled in the sports media business, ESPN is extremely well positioned for continued success."

Bodenheimer‘s 13 years as ESPN president have been marked by expansive growth domestically and internationally across every available metric and media platform.

Today, ESPN is comprised of eight US television networks, five HD services, a 3D TV network, 48 international networks, 13 international editions of SportsCenter, 18 web sites, 750 radio affiliates, the largest mobile sports operation and 7,000 employees worldwide. ESPN‘s Bristol, Conn., headquarters has increased to 116 acres, featuring a state-of-the-art digital production center with construction of a second facility underway.

Bodenheimer said, "I‘ve been with ESPN 31 years - my entire professional career. Constant change and consistent growth have marked each of those years, and to me those two themes underscore today‘s news. We‘ve demonstrated that change managed well is healthy - for companies and for people. After 13 years as President, I felt it was a good time to step away from the day to day management of ESPN and let others take the lead. I very much appreciate Bob‘s support over the years, and look forward to my future role with ESPN.

"We are in great shape on many fronts. The people of ESPN have made us the great company we are today. I am very proud of all that we have accomplished together, and excited about our future."

As executive VP, content, Skipper is responsible for the creation, programming and production of ESPN content across all media platforms, including television, radio, the Internet, broadband, wireless, interactive games and home entertainment. Under his leadership, ESPN has consistently set records for television ratings and digital consumption; negotiated several major rights agreements with the NFL, NBA, Major League Baseball, FIFA, the Masters Tournament, the British Open, the USTA, Wimbledon and several college conferences; and launched a variety of creative programming including the critically acclaimed ESPN Films sports documentary series.

Skipper joined ESPN in June 1997 as ESPN The Magazine senior VP, GM. Previously, he was The Disney Publishing Group senior VP, overseeing all of Disney‘s magazine, book and licensed publishing operations in the US.

Skipper said, "I am humbled and excited to be given the opportunity by Bob and George to lead this terrific company. George set a high bar and an impeccable example, and I will dedicate all of my energy to follow George‘s lead in both empowering and supporting my 7,000 ESPN colleagues who do such great work every day. I look forward to working alongside them in meeting the many challenges that lie ahead."

MUMBAI: Apple has named Arthur D Levinson as the company?s non-executive chairman of the board. Levinson, who has been a co-lead director of Apple?s board since 2005, has served on all three board committees- audit and finance, nominating and corporate governance, and compensation-and will continue to serve on the audit committee.

Apple also announced that Disney president, CEO Robert A Iger will join Apple?s board and will serve on the audit committee.

Apple CEO Tim Cook said, "Art has made enormous contributions to Apple since he joined the board in 2000. He has been our longest serving co-lead director, and his insight and leadership are incredibly valuable to Apple, our employees and our shareholders.

"Bob and I have gotten to know one another very well over the past few years and on behalf of the entire board, we think he is going to make an extraordinary addition to our already very strong board. His strategic vision for Disney is based on three fundamentals: generating the best creative content possible, fostering innovation and utilising the latest technology, and expanding into new markets around the world which makes him a great fit for Apple."

Levinson said, "I am honoured to be named chairman of Apple?s board and welcome Bob to our team. Apple is always focused on out-innovating itself through the delivery of truly innovative products that simplify and improve our lives, and that is something I am very proud to be a part of."

Iger said, "Apple has achieved unprecedented success by consistently creating high quality, truly innovative products, and I am extremely pleased to join the board of such a wonderful company. Over the years, I have come to know and admire the management team, now ably led by Tim Cook, and I am confident they have the leadership and vision to ensure Apple?s continued momentum and success."

MUMBAI: US media conglomerate Disney?s net income for the fiscal was up 21 per cent to $4.8 billion.

Disney president, CEO Robert A. Iger said, ?Fiscal 2011 was a great year financially and strategically, demonstrating the strength of our brands and businesses with record revenue, net income and earnings per share. We are confident the company is well-positioned to deliver long-term value for our shareholders with our focus on quality content, compelling uses of technology and global asset growth.?

Media Networks revenues for the year increased by nine per cent to $18.7 billion and segment operating income increased 20 per cent to $6.1 billion. For the quarter, revenues also increased by per cent to $4.8 billion and segment operating income increased by 20 per cent to $1.5 billion.

Operating income at Cable Networks increased $760 million to $5.2 billion for the year due to growth at ESPN and the worldwide Disney Channels and an increase in equity income. The increase at ESPN reflected higher advertising and affiliate revenue, partially offset by higher programming and production, labour and marketing costs. Higher advertising revenue was driven by higher rates while the increase in affiliate revenue reflected contractual rate increases.

The programming and production cost increase was driven by the addition of college football programming including Bowl Championship Series games and contractual rate increases for NFL, college football, NASCAR and Major League Baseball programming. These increases were partially offset by the absence of programming costs for the FIFA World Cup which was broadcast in the prior year.

Growth at the worldwide Disney Channels was driven by higher affiliate revenue due to higher contractual rates domestically and subscriber growth internationally, sales of Disney Channel programming and increased advertising revenues internationally. These increases were partially offset by higher programming and production costs due to more episodes of original programming. Increased equity income was driven by the absence of programming write-offs and higher advertising and affiliate revenues at A&E/Lifetime (AETN).

For the quarter, operating income at Cable Networks increased by $191 million to $1.3 billion due to growth at the worldwide Disney Channels, increased equity income and an improvement at ESPN. The increase at the worldwide Disney Channels was driven by sales of Disney Channel programming, higher affiliate revenue due to contractual rate increases domestically and advertising revenue growth internationally.

The increase at ESPN reflected higher contractual rates for affiliate fees and, to a lesser extent, growth in advertising revenue, partially offset by an increase in programming and production, labor and marketing costs. Advertising revenue growth was driven by higher rates, partially offset by fewer units sold and lower ratings, in part reflecting the absence of the FIFA World Cup. Programming and production cost increases were driven by higher contractual rates for college football and NFL programming, partially offset by the absence of programming costs for the FIFA World Cup. Increased equity income reflected the absence of programming write-offs at AETN.

Operating income at Broadcasting increased $254 million to $913 million for the year driven by lower programming and production costs at the ABC Television Network, higher advertising revenues at the Network and owned television stations, and higher affiliate fees, partially offset by a decrease in the cost charged to ESPN for programming aired on the Network. Decreased Network programming and production costs reflected a lower cost mix of programming in primetime due to a shift in hours from original scripted programming to reality programming, the shift of the Rose Bowl and BCS National Championship game to ESPN and lower news and daytime production costs. Higher Network advertising revenues reflected higher rates, partially offset by lower ratings.

For the quarter, operating income at Broadcasting increased $54 million to $201 million driven by lower programming and production costs and higher Network advertising revenues, partially offset by decreased political advertising at the owned television stations. Lower programming costs were driven by decreased write-offs. Higher Network advertising revenues were due to higher rates, improved news ratings and higher sports units sold, partially offset by lower primetime ratings.

Studio Entertainment revenues for the year decreased by five per cent to $6.4 billion and segment operating income decreased by 11 per cent to $618 million.

For the quarter, revenues decreased by eight per cent to $1.5 billion and segment operating income increased 13% to $117 million. Lower results for the year reflected decreased worldwide theatrical and home entertainment results and higher technology infrastructure spending, partially offset by lower film cost write-downs and a higher revenue share with the Consumer Products segment primarily due to the performance of Cars merchandise.

Decreased theatrical results reflected the stronger overall performance of key prior-year titles, Toy Story 3, Alice in Wonderland, Iron Man 2 and Princess and the Frog compared to the current-year performance of Cars 2, Pirates of the Caribbean: On Stranger Tides, Tangled, Thor and Captain America. This decrease was partially offset by the poor performance of prior year summer releases, The Prince of Persia and Sorcerer?s Apprentice.

Decreased home entertainment results reflected a change in the transfer pricing arrangement between Studio Entertainment and Media Networks for the distribution of Media Networks home entertainment product and lower domestic sales volume. These decreases were partially offset by higher unit sales and improved net effective pricing internationally which benefitted from a higher Bluray sales mix.

Improved results for the quarter were driven by lower film cost write-downs and improved domestic theatrical results, partially offset by decreased international theatrical and worldwide home entertainment results. In both domestic and international theatrical markets, Cars 2 did not perform in line with the strong prior year performance of Toy Story 3.

However, domestic theatrical results improved due to the better overall performance of The Lion King 3D and The Help in the current quarter, compared to The Sorcerer?s Apprentice, You Again and Step Up 3 in the prior year quarter. Domestic theatrical results also benefitted from lower pre-release marketing expense. Decreased home entertainment results reflected lower overall sales volume domestically and decreased sales of catalog titles internationally. Consumer Products revenues for the year increased by 14 per cent to $3.0 billion and segment operating income increased by 21 per cent to $816 million.

For the quarter, revenues increased 12 per cent to $816 million and segment operating income increased 13 per cent to $207 million. The increase in segment operating income for the year and quarter was driven by higher Merchandise Licensing revenues reflecting the strong performance of Cars merchandise and higher revenue from Marvel properties. The increase in revenue from Marvel properties reflected the impact of acquisition accounting which reduced revenue recognition in the prior-year periods. These increases were partially offset by a higher revenue share with the Studio Entertainment segment primarily due to the performance of Cars merchandise. The increase in revenue from Marvel properties for the year also included an additional quarter of operations for Marvel which was acquired at the end of the first quarter of the prior year.

Additionally, results for the year reflected an improvement at the Disney Store North America driven by higher comparable store sales. Interactive Media Interactive Media revenues for the year increased by 29 per cent to $982 million and operating results decreased $74 million to a loss of $308 million. For the quarter, revenues increased by 19 per cent to $223 million and operating results improved $10 million to a loss of $94 million.