Disney earnings grow on back of hit films

Walt Disney has reported a larger fourth-quarter profit on the strength of hit films such as Signs and Lilo and Stitch.

Disney chairman and chief executive Michael Eisner says 2002 was particularly difficult.

But he says the company will reap the benefit of capital investments by showing revenue growth of "well over 20%" in 2003.

The company reported that net profit more than quadrupled to $222m, compared to $53m in the same period last year.

Revenues during the quarter increased 15% to $6.66bn, compared to $5.79bn in last year's fourth quarter.

Eisner says intensive capital investment over the past five years has created a "protective moat" around the company's assets. "Our branded assets are safer and more secure so they can thrive in the years to come," he said.

The company showed the greatest strength in its film studio, which showed operating income of $149m during the quarter, compared to a loss of $121m in the same period last year.

Disney's weakest segment was its media networks division, which includes the ABC Television network and cable channels such as ESPN. Operating income there fell 60% to $147m from $348m in the same period last year.

For the full year, the company reported net income of $1.28bn, compared to a loss of $158m in the same period last year. Yearly revenues increased 1% to $25.33bn, compared to $25.17bn the previous year.

Excluding a one-time gain from the sale of investments this year and one-time losses last year relating to the closing of some Disney stores and the Go.com internet business, Disney reported annual profits of $1.28bn this year compared to $1.34bn in the same period last year.