The Walt Disney Co. (NYSE:DIS) said late Tuesday that fiscal first-quarter income rose 12 percent as a slimmer movie slate and upbeat theme park results helped the company top earnings forecasts even while revenue gains were less than expected.
Net income for the quarter ended December 31 rose to $1.46 billion, or 80 cents per share, from $1.30 billion, or 68 cents per share, a year earlier. The results beat the 71 cents per share expected by analysts polled by FactSet.
Revenue at the House of the Mouse was up 1 percent to $10.78 billion from $10.72 billion. The revenue figure fell short of the $11.20 billion expected by analysts.
Disney chief executive Bob Iger said: "Our results reflect the benefits of our ongoing strategy to invest in and leverage our core brands — Disney, Pixar, Marvel, ESPN and ABC."
Fees paid by distributors of ESPN rose, but advertising revenue at ESPN and broadcast network ABC was flat. Adjusting for the switch of the Rose and Fiesta college football bowl games to the second quarter and a delayed start to the NBA basketball season, ESPN ad revenue rose 8 percent.
Disney's movie studio revenue fell because it released fewer big films than in past years, in an effort to avoid write-downs on money-losers. Disney released "The Muppets" in the most recent holiday quarter, versus "Tangled" and "Tron: Legacy" a year ago. It also experienced a dip in sales of DVDs.
Interactive media revenue declined, too, as the company moved away from expensive console games and focused on cheaper-to-make social games. Iger said he believes the segment will finally turn a profit in the company's 2013 fiscal year.
Revenue at the company's parks and resorts division grew, thanks to higher spending and attendance at domestic theme parks, and the opening of Toy Story Land at Hong Kong Disneyland in November. Consumer products revenue grew.
The company is on track to spend several hundred million dollars more than a year ago on capital expenditures, including for its fourth cruise ship, the Disney Fantasy, which makes its maiden voyage next month.