The Walt Disney Co. posted a surprise 18% increase in fourth-quarter earnings Thursday and announced an executive job switch that might point to an eventual successor to chief executive Robert Iger.
Iger said he was behind the decision to turn chief financial officer Tom Staggs into the parks and resorts chairman, while making parks chairman Jay Rasulo the new CFO.
Iger referred to his own career when describing the benefit of giving his CFO experience in Disney’s operational end and having Rasulo gain a better perspective on the entire company.
“Having benefited myself from being given new opportunities… I think I can particularly appreciate what a real opportunity this is for both of them,” said Iger.
The executive shuffle, which occurs Jan. 1, came amid signs the company is beginning to emerge from an advertising market hit hard by the recession.
Although ad revenues were still down in the quarter, Staggs said prices for commercial time on the ABC network in the current quarter were up 20% from the upfront bulk ad buying season earlier this year and trends were improving at ESPN.
Net income for the entire company rose to US$895 million, or 47 cents per share, as revenue at its cable, broadcast and movie studio units rose, more than offsetting declines at its parks and consumer products units. Excluding one-time items, earnings per share came to 46 cents, handily beating analyst estimates by a nickel.
Overall revenue rose 4% to $9.87 billion in the fiscal fourth quarter that ended Oct. 3.
For the full year, revenue fell 4% to $36.15 billion and net income fell 25% to $3.31 billion, or $1.76 per share.
