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Thursday, Mar 28, 2024

Walt Disney Posts Earnings Increase

The Walt Disney Co. announced an increase in first-quarter earnings fueled by a boost in its theme parks, television and consumer products units. The Burbank-based company also announced that in a $2.7 billion deal, it will merge ABC Radio’s 22 stations with Citadel Broadcasting Corp. calling it Citadel Communications which will own over 200 FM and AM stations. Disney shareholders will retain 52% ownership of Citadel, while Citadel shareholders will control the remaining 48%. Robert Iger, Disney president and CEO, said that the deal will further maximize the company’s assets for its shareholders. At the end of December 31, 2005, net income rose to $734 million, or 37 cents per share on revenues of $8.9 billion compared to $686 million (33 cents per share) in the like period a year ago when revenues were $8.7 billion. Iger attributed the increase to the company’s commitment to ” embracing leading edge technologies, and strengthening (its) global presence ” demonstrated by the recent acquisition of Pixar. Disney also reported gains of $70 million due to sales of a cable television investment and of a magazine business.

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