Disney Profits From Weaker Dollar

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LOS ANGELES, California (AP) -- The Walt Disney Co. said Tuesday that the weak U.S. dollar kept domestic vacationers closer to home, boosting theme park revenue while growth in the company's film studios and media networks also helped push second-quarter net profit 22 percent higher. Disney said it earned $1.13 billion, or 58 cents per share, in the quarter ended March 29, compared with $931 million, or 44 cents per share, a year earlier. Revenue for the period grew 10 percent to $8.71 billion. Analysts expected earnings of 51 cents per share on $8.47 billion in revenue, according to Thomson Financial. Disney shares jumped 84 cents, or 2.5 percent, to $34.57 in after-hours trading. The shares gained 44 cents to end the regular trading session at $33.73 before the earnings were announced. Tourists from abroad also took advantage of the weak dollar, increasing park attendance and spending. Resort revenue grew 11 percent to $2.73 billion, and hotel bookings at the resorts through 2008 were trending higher than last year, the company said. "We're definitely benefiting from the dollar weakness ... in two ways," Chief Executive Robert Iger told analysts on a conference call. A cheaper mix of hotel room offerings and bargains for extended stays also kept tourists coming, he said. Domestic park attendance was up 5 percent, while parks in Paris and Hong Kong saw double-digit increases. "While we don't know where the marketplace will take us, we believe we're much better positioned in a difficult economic cycle than we were in the past, certainly back in 1991," Iger said. Analysts had expected that the weak U.S. economy and reduced consumer spending might impede revenue at Disney theme parks. "While we expect (parks revenues) to weaken, they continue to hold up better than expected," said Richard Greenfield, an analyst with Pali Research. The

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