Disney Posts Strong Earnings

You just won the (insert title here)! What are you going to do next? The inevitable and enthusiastic reply is “I’m going to Disney World!” Well, that phrase has stayed so popular because of the universal recognition of their name and brand. Walt Disney Co. has reported a stronger-than-expected quarter, surprising investors and commentators alike. The gains came mostly on the back of their channel performing so well.

Walt Disney Co (DIS.N) has reported a stronger-than-expected quarterly profit, as its cable TV division turned in another star performance and cost-cutting provided some much-needed support for its film studio.

Disney shares rose as much as 2 percent on Tuesday after the earnings report, which followed what is becoming a familiar pattern for media companies: News Corp (NWSA.O) and Time Warner Inc (TWX.N) also reported better-than-expected results this month. For all three, the strength of cable TV can be credited.

Performances like this just prove that Disney is only going to grow over the next couple of years. Their brand has been carefully cultivated and can experience success even in the midst of a recession.