The Walt Disney Company Reports Higher First Quarter Earnings

The Walt Disney Company today reported earnings for the first quarter ended December 30, 2006. Diluted earnings per share (EPS) for the quarter increased to $0.79, compared to $0.37 in the prior-year quarter.

Results for the current quarter included gains on sales of our interests in E! Entertainment and Us Weekly totaling $1.1 billion and an equity-based compensation plan modification charge of $48 million associated with the planned ABC Radio transaction. Results for the prior-year quarter included gains on sales of a Spanish cable equity investment and Discover Magazine totaling $70 million. Collectively, these items increased EPS for the current and prior-year quarter by $0.29 and $0.02, respectively. Excluding these items, EPS increased 43% to $0.50 from $0.35 in the prior-year quarter.

"I am very pleased to report such strong quarterly earnings to kick off 2007," said Bob Iger, president and chief executive officer of The Walt Disney Company. "These results are particularly gratifying given the great year we had in 2006 and are another clear sign our strategy is driving growth and creating shareholder value."