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- Jan 3, 2001
UPDATE: Disney 'very Bullish' On 2007, CFO Says
December 05, 2006: 03:26 PM EST
CHICAGO (Dow Jones) -- Walt Disney Co. is well positioned for robust revenue growth in fiscal 2007, fueled by its movie studio and its ABC and ESPN television networks, Chief Financial Officer Tom Staggs told a gathering Tuesday at the annual Credit Suisse Media and Telecom Week conference in New York.
On the heels of upbeat comments made after the company's fiscal fourth quarter earnings call, Staggs, heard on a Webcast, said Disney (DIS) remains "very bullish" on its prospects.
In 2007, the company has high hopes for such films as "Pirates of the Caribbean 3," the latest sequel to two hugely popular adventure films starring Johnny Depp, and the computer-animated "Meet the Robinsons," Staggs said.
While the overall DVD market is soft, Staggs says it is "very good" for " certain titles." Pixar's "Cars," recently released on home video, has a chance to sell nearly as many units as "The Incredibles," Staggs said.
"The Incredibles," the saga of a family with super powers reminiscent of "The Fantastic Four," was the top-selling DVD of 2005, with total sales of about 17.4 million units that year.
Staggs said the company's recent decision to eliminate a reported 160 jobs from its animation staff should be seen as a "relatively modest trimming" that will allow the company to better pursue its strategy. The animation studio plans to turn out two films a year, but Disney wants to make sure that schedule is " dictated by the creative process," Staggs said. At ABC, the company expects advertising sales to be up by a "mid-single-digit" percentage from this summer, when ads were sold in advance of the fall season.
Excluding sports programming, ABC's primetime ratings have grown in the current season.
Though ESPN continues to pay high sports rights fees, while the growth in fees from cable and satellite providers is slowing down, the sports network should still see significant revenue growth in the coming years, Staggs forecasted, in line with its goals through fiscal 2009.
Growth at ESPN will come, he said, from the successful integration of several platforms, including the Web, several digital channels, and radio. The network's acquisition of "Monday Night Football" after 36 seasons on ABC has been successful, in Stagg's view, largely because the telecast has been relentlessly promoted across various ESPN media.
The Disney theme parks face difficult comparison with a strong fiscal 2006, but the company still expects margin improvement, Staggs said. The company will spend more on the theme parks in the coming years, partly on adding attractions that integrate Disney-branded movies and television programs.
Disney's consumer products segment will be hampered somewhat by greater investment, including some $350 million in video game investments over the next five years, Staggs said.
Disney shares rose 1.8% to $34.05 Tuesday afternoon.
December 05, 2006: 03:26 PM EST
CHICAGO (Dow Jones) -- Walt Disney Co. is well positioned for robust revenue growth in fiscal 2007, fueled by its movie studio and its ABC and ESPN television networks, Chief Financial Officer Tom Staggs told a gathering Tuesday at the annual Credit Suisse Media and Telecom Week conference in New York.
On the heels of upbeat comments made after the company's fiscal fourth quarter earnings call, Staggs, heard on a Webcast, said Disney (DIS) remains "very bullish" on its prospects.
In 2007, the company has high hopes for such films as "Pirates of the Caribbean 3," the latest sequel to two hugely popular adventure films starring Johnny Depp, and the computer-animated "Meet the Robinsons," Staggs said.
While the overall DVD market is soft, Staggs says it is "very good" for " certain titles." Pixar's "Cars," recently released on home video, has a chance to sell nearly as many units as "The Incredibles," Staggs said.
"The Incredibles," the saga of a family with super powers reminiscent of "The Fantastic Four," was the top-selling DVD of 2005, with total sales of about 17.4 million units that year.
Staggs said the company's recent decision to eliminate a reported 160 jobs from its animation staff should be seen as a "relatively modest trimming" that will allow the company to better pursue its strategy. The animation studio plans to turn out two films a year, but Disney wants to make sure that schedule is " dictated by the creative process," Staggs said. At ABC, the company expects advertising sales to be up by a "mid-single-digit" percentage from this summer, when ads were sold in advance of the fall season.
Excluding sports programming, ABC's primetime ratings have grown in the current season.
Though ESPN continues to pay high sports rights fees, while the growth in fees from cable and satellite providers is slowing down, the sports network should still see significant revenue growth in the coming years, Staggs forecasted, in line with its goals through fiscal 2009.
Growth at ESPN will come, he said, from the successful integration of several platforms, including the Web, several digital channels, and radio. The network's acquisition of "Monday Night Football" after 36 seasons on ABC has been successful, in Stagg's view, largely because the telecast has been relentlessly promoted across various ESPN media.
The Disney theme parks face difficult comparison with a strong fiscal 2006, but the company still expects margin improvement, Staggs said. The company will spend more on the theme parks in the coming years, partly on adding attractions that integrate Disney-branded movies and television programs.
Disney's consumer products segment will be hampered somewhat by greater investment, including some $350 million in video game investments over the next five years, Staggs said.
Disney shares rose 1.8% to $34.05 Tuesday afternoon.
