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Disney 4Q profit in line, revenue misses forecast

Associated Press Modified: November 8, 2012 at 6:45 pm •  Published: November 8, 2012
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The addition of blockbuster films to its slate looked even more strategic considering that movie studio revenue fell in the quarter and the company booked a charge for halting production of a stop-motion animated film that was going to be directed by "Coraline" director Henry Selick.

CEO Bob Iger reiterated his enthusiasm about the Lucasfilm purchase, saying the value of the franchise is "unparalleled."

Net income in the three months to Sept. 29 rose to $1.24 billion, or 68 cents per share, from $1.09 billion, or 58 cents per share, a year ago.

Adjusted earnings of 68 cents per share matched the expectations of analysts polled by FactSet.

Revenue rose 3 percent to $10.78 billion, slightly below the $10.93 billion analysts expected.

The parks and resorts division was helped by the launch of its newest cruise ship, the Disney Fantasy, in March, and the opening of a new section at Disney California Adventure called Cars Land in June.

Movie studio revenue fell as "Brave" failed to perform as well as "Cars 2" a year ago. Revenue at the company's pay TV and broadcast networks grew a modest 2 percent. Smaller audiences and lower ad revenue at ABC slowed the company's momentum. At the same time, ESPN gained more in fees from distributors despite flat ad revenue.

The company said losses grew at Hulu, the online video service it owns jointly with News Corp. and Comcast Corp., due to higher programming and marketing costs.