news from investor relations - the walt disney...

FALL 2012

News From

Q3 FY12 Earnings Results pg2 - Company News

Disney B.O. Passes $1 Bi l l ion pg3 - Studio Entertainment

ABC Fal l Premiere Dates pg4 - Media Networks

ESPN and MLB’s New Agreement pg6 - ESPN

INVESTOR RELATIONS

Disney Reports Q3 FY12 Earnings Results

On August 7, The Walt Disney Company reported earnings for its third fiscal quarter and nine months ended June 30, 2012. Diluted earnings per share (EPS) for the third quarter increased 31% to $1.01 from $0.77 in the prior-year quarter. Diluted EPS for the nine months ended June 30, 2012, was $2.44 compared to $1.93 in the prior-year period.

“We had a phenomenal third quarter, delivering the largest quarterly earnings in the history of our company,” Bob Iger, Chairman and CEO of The Walt Disney Company, said. “Earnings per share were up 31% over last year, driven by growth in every one of our businesses. We also delivered record earnings per share for the first nine months of our fiscal year, and we believe our results clearly demonstrate Disney’s unique value proposition and great potential to deliver long-term growth.”

MEDIA NETWORKS: Media Networks revenues for the quarter increased 3% to $5.1 billion, and segment operating income increased 2% to $2.1 billion.

PARKS AND RESORTS: Parks and Resorts revenues for the quarter increased 9% to $3.4 billion, and segment operating

income increased 21% to $630 million. Results for the quarter were driven by increases at Tokyo Disney Resort, Disney Cruise Line and domestic parks and resorts.

STUDIO ENTERTAINMENT: Studio Entertainment revenues were essentially flat at $1.6 billion, and segment operating income increased $264 million to $313 million. Higher operating income was primarily due to increases in worldwide theatrical results and worldwide television distribution, partially offset by a decrease in worldwide home entertainment.

CONSUMER PRODUCTS: Consumer Products revenues increased 8% to $742 million, and segment operating income increased 35% to $209 million. Higher operating income was primarily due to increases at Merchandise Licensing and at our retail business.

INTERACTIVE: Interactive revenue for the quarter decreased 22% to $196 million, and segment operating results improved from a loss of $86 million in the prior-year quarter to a loss of $42 million in the current quarter. Operating results were driven by improved performance from our games and online businesses.

COmpANY NEwS

F A L L 2 0 1 2 I 2T h e Wa l t D i s n e y C o m p a n y - I n v e s t o r R e l a t i o n s

Some of the statements in this note are forward looking and actual results may differ materially from what we predict, depending on the general economy and other factors identified in our Reports on Form 10-K and other SEC filings. For more information, visit www.disney.com/investors.

Disney passes $1 Billion at Domestic B.O.

Walt Disney Studios Motion Pictures passed $1 billion in domestic gross on Sunday, July 8, becoming the first studio to reach this plateau this year. This is the fastest Disney has ever reached the billion dollar mark (188 days), beating the

previous Studio record of 210 days set in 2010. This marks the 16th time in the last 19 years (and the last seven years in a row) that Disney has achieved this milestone.

marvel’s The Avengers Sequel

The Walt Disney Studios has announced a release date for Marvel Studios’ sequel to the biggest Super Hero blockbuster and third -highest -grossing film of all time, Marvel’s The Avengers. Joss Whedon returns to write and direct the UNTITLED MARVEL’S AVENGERS SEQUEL set for release May 1, 2015.

STUDIO ENTERTAINmENT

The Lion King is the Fifth Longest-Running Show in Broadway History

Disney’s landmark musical event, The Lion King, played its 6,138th performance on Wednesday, August 15, becoming the fifth longest-running show in Broadway history. The Lion King surpassed the original Broadway production of A Chorus Line.

In its 15th year, The Lion King remains ascendant, recently becoming the highest-grossing Broadway show in history. Since its Broadway premiere on November 13, 1997, 19 productions around the globe have been seen by more than 65 million people,

grossing over $4.8 billion and, cumulatively, running a staggering 91 years. Produced by Disney Theatrical Productions (under the direction of Thomas Schumacher), The Lion King is only the second show in history to generate five productions running 10 or more years. Translated into seven different languages (Japanese, German, Korean, French, Dutch, Mandarin, Spanish), the show has been performed in 15 different countries on five continents. Continuing to reign as one of the most popular stage musicals in the world, The Lion King can currently be seen on Broadway, on stages across North America, on tour in Japan, and in Tokyo, London’s West End, Hamburg and Madrid. A UK tour launches in Bristol, England later this month.


The Disney/ABC Television Group Receives 53 Emmy® Nominations

The Disney/ABC Television Group received 53 nominations for the 64th Primetime Emmy Awards, covering the eligibility period of June 1, 2011, through May 31, 2012.

Among ABC’s nominations were 14 for Modern Family, which received nods for Outstanding Comedy Series, Outstanding Supporting Actress for Julie Bowen and Sofia Vergara, and Outstanding Supporting Actor for Ed O’Neill, Jesse Tyler Ferguson, Ty Burrell and Eric Stonestreet. Dancing with the Stars received two nominations, for Outstanding Reality – Competition Program and Tom Bergeron for Outstanding Host for a Reality or Reality-Competition Program. Jimmy Kimmel Live received a nod for Outstanding Variety Series, Ashley Judd received a nomination for Outstanding Lead Actress in a Miniseries or

a Movie for Missing, and Jamie Oliver’s Food Revolution and Shark Tank were both nominated for Outstanding Reality Program.

Jimmy Kimmel will host the 64th Primetime Emmy Awards, broadcast live coast to coast, Sunday, September 23, 2012, exclusively on ABC.

mEDIA NETwORKS

ABC Fall premiere Dates

FRIDAy, SEPTEMbER 148:00–9:00 p.m. Shark Tank9:00–10:00 p.m. What Would You Do?10:00–11:00 p.m. 20/20

MONDAy, SEPTEMbER 248:00–10:00 p.m. Dancing with the Stars: All-Stars10:00–11:00 p.m. Castle

TUESDAy, SEPTEMbER 258:00–10:00 p.m. Dancing with the Stars the Results Show10:00–11:00 p.m. Private Practice

WEDNESDAy, SEPTEMbER 268:00–9:00 p.m. The Middle (special one-hour premiere)9:00–9:30 p.m. Modern Family9:30–10:00 p.m. The Neighbors (series premiere)

ThURSDAy, SEPTEMbER 278:00–9:00 p.m. Last Resort9:00–10:00 p.m. Grey’s Anatomy10:00–11:00 p.m. Scandal

SUNDAy, SEPTEMbER 308:00–9:00 p.m. Once Upon a Time9:00–10:00 p.m. Revenge10:00–11:00 p.m. 666 Park Avenue

WEDNESDAy, OCTObER 38:30–9:00 p.m. The Neighbors (regular time period premiere)

SUNDAy, OCTObER 77:00–8:00 p.m. America’s Funniest Home Videos

WEDNESDAy, OCTObER 1010:00–11:00 p.m. Nashville

WEDNESDAy, OCTObER 179:30–10:00 p.m. Suburgatory

TUESDAy, OCTObER 239:00–9:30 p.m. Happy Endings9:30–10:00 p.m. Don’t Trust the B—in Apartment 23

FRIDAy, NOVEMbER 28:00–8:30 p.m. Last Man Standing8:30–9:00 p.m. Malibu Country9:00–10:00 p.m. Shark Tank (new time period premiere)


Disney/ABC Television Group and Comcast Unveil watch products

Comcast and Disney/ABC Television Group recently announced that Xfinity TV customers can now access three new authenticated TV+ products: WATCH Disney Channel, WATCH Disney XD and WATCH Disney Junior—at home or on-the-go—via a suite of new innovative apps for iPhone, iPad and iPod touch, and online at WATCHDisneyChannel.com, WATCHDisneyXD.com and WATCHDisneyJunior.com. The three new WATCH products are the first-ever to provide authenticated users with both access to live, linear network streams as well as an extensive offering of advantaged window “on demand” episodes.

Xfinity TV customers, who subscribe to Disney Channel, Disney XD and Disney Junior networks as part of their monthly video service can now stream these channels live online and via the convenience of their iOS devices. In addition, Xfinity TV customers can view a variety of top series including Good Luck Charlie, Shake It Up, Phineas and Ferb, TRON: Uprising, Mickey Mouse Clubhouse and Jake and the Never Land Pirates from Disney Channel, Disney XD and Disney Junior on these new WATCH products, on Xfinity On Demand, Xfinity.com/tv and

through the Xfinity TV app on the iPad, iPhone and iPod touch and Xfinity TV Player app on Android-powered devices, anytime.

The free Watch apps include a simple, kid-friendly user interface that brings the current online viewing experience to the high-resolution, Multi-Touch displays of iOS devices. Once a user downloads one of the WATCH apps or visits one of the WATCH websites, they will receive sign-in instructions to verify their Comcast Xfinity TV credentials, allowing them access to their favorite Disney Channel, Disney XD or Disney Junior programs on their device(s).

Non-authenticated users of the WATCH Disney Channel, WATCH Disney XD and WATCH Disney Junior services will have access to a limited number of “on demand” episodes each month.

Disney/ABC Television Group’s WATCH apps are available for free from the App Store on iPhone, iPad and iPod touch or at www.itunes.com/appstore.


ESpN

ESpN, mLB Reach Eight-Year multiplatform Rights Extension

ESPN and Major League Baseball have reached an eight-year, multiplatform rights extension which will significantly enhance ESPN’s TV, digital, radio and International MLB rights. The agreement—effective 2014 through 2021— was recently announced by MLB Commissioner Allan H. Selig and ESPN President John Skipper. ESPN’s expanded MLB package will include the following additional rights: • The addition of an annual Wild Card game presented by Budweiser, which will alternate between AL and NL each year; • The rights to produce a significant amount of additional Baseball Tonight hours; • The rights to all regular-season tiebreaker games, if necessary; • In-progress highlights during SportsCenter on ESPN, ESPN2 and ESPNEWS; • 10 additional regular-season games per season, including four Pennant Chase games in late September and up to six Holiday games across Memorial Day, July 4th and Labor Day; • New and increased co-exist rights on Monday Night Baseball and Wednesday Night Baseball; • The rights to produce a new, daily baseball studio show. The new deal will also include several enhancements to existing rights: • Increased rights for Sunday Night Baseball exclusive team appearances;

• More selection flexibility throughout ESPN’s 25-game Sunday Night Baseball slate; • Increased highlight rights for ESPN websites and applications, additional digital rights for ESPN programs and increased interactive television rights; • Increased ESPN Radio rights, including the additional right to co-exist during two Saturday windows per team, per year; • All MLB-related television content, including games and studio shows, to be available on WatchESPN; • Continued State Farm Home Run Derby coverage during MLB All-Star, including renewed 3D Derby rights; • Renewal and expansion of International rights across territories, including Wild Card games and the rights to additional Baseball Tonight hours. The new agreement will guarantee a 30-plus year continuous relationship between ESPN and MLB—dating back to 1990— which is one of the longest standing relationships between a network and a league.


New Fantasyland Grand Opening

Walt Disney Parks and Resorts recently announced that the grand opening of New Fantasyland will take place on December 6, 2012. Attractions included in this opening are Under the Sea ~ Journey of The Little Mermaid, Be Our Guest Restaurant, Enchanted Tales with Belle, Ariel’s Grotto, Gaston’s Tavern and Bonjour! Village Gifts.

Previews of these attractions will begin November 19.

As previously planned, the New Fantasyland expansion will continue with the opening of Princess Fairytale Hall in 2013 and the debut of a new Disney “mountain” in the form of the Seven Dwarfs Mine Train in 2014.

The Storybook Circus section of the New Fantasyland expansion, which includes Barnstormer—Starring the Great Goofini, the Casey Jr. Splash & Soak Station, and Dumbo the Flying Elephant, opened to guests in July.

pARKS AND RESORTS

Aulani, a Disney Resort & Spa, Ko Olina, Hawai’i Announces plans to Expand Offerings

Aulani, a Disney Resort & Spa, Ko Olina, Hawai’i recently announced it is expanding its offerings to give guests even more to love at the 21-acre vacation paradise resort inspired by the wonders and traditions of Hawaii.

The project is planned to include an expansion of the highly popular Waikolohe Valley pool area as well as the addition of two new quick-service dining options. In addition, the Starlit

Hui show, a family favorite, will move to a larger venue so more guests can experience the performance.

Scheduled to begin in September and conclude in mid 2013, the expansion is happening in conjunction with the final build-out of the resort. More specific details of the expansion will be shared at a later date.


Disney Junior’s Hit Series Inspire New product Lines

Disney Consumer Products has launched an assortment of products inspired by Disney Junior’s hit series’ Jake and the Never Land Pirates and Doc McStuffins. Popularity for both programs has generated strong consumer demand for merchandise lines that allow fans to take home their favorite characters.

Breakout hit Jake and the Never Land Pirates, ranked as 2011’s No.1 cable TV series for boys 2-5, a spot it continues to hold. The March premiere of Doc McStuffins, the imaginative animated series featuring 6-year-old Doc McStuffins who communicates with and heals stuffed animals and toys out of her backyard playhouse clinic, ranks as the No. 1 preschool series launch in cable TV history among Adults 18-49.

CONSUmER pRODUCTS


Disney Interactive Launches Disney pIXEL’D

Disney Interactive recently launched Disney PIXEL’D, a new app for creating original and Disney-themed pixel art and animations for iPhone, iPad and iPod Touch. With Disney PIXEL’D, guests can create one-of-a-kind pixel art that literally pops as you make it, and then bring that artwork to life with an easy frame-by-frame animation tool. Disney PIXEL’D is a free app that will offer regular content updates and in-app purchases for expanded sets of Disney character art and fill patterns for endless hours of pixel art fun. Disney PIXEL’D was developed internally at Disney Interactive by the makers of the award-winning online creativity destination Create on Disney.com, whose guests have produced more than 16 million

pieces of original artwork since its launch in August 2009.Designed for all ages and abilities, Disney PIXEL’D artists can use their imagination to make original images or use Disney character stamps and fill patterns to complement their scenes. Artists can share their work with friends and family on Facebook, Twitter, Tumblr and YouTube or through email. A Buddy Draw feature allows multiple friends to connect via Bluetooth or Wi-Fi to draw together in real-time.

The Disney PIXEL’D website is available for online support, tutorials and inspirational fan art at http://disney.com/pixeld.

INTERACTIVE


T h e Wa l t D i s n e y C o m p a n y - I n v e s t o r R e l a t i o n s F A L L 2 0 1 2 I 10

Q4 - FY12

Q4 - FY12 Q4 - FY11

Q4 - FY11

TitleThe Odd Life of Timothy GreenFinding Nemo 3D

Note: Release Dates Subject to Change.

TitleWinnie the PoohCaptain America: The First Avenger*The HelpFright NightLion King Re-Release (3D)

* Paramount Distributed

BannerDisneyPixar

Release Date08/15/1209/14/12

BannerDisneyMarvel

DreamWorksDreamWorksDisney

Release Date07/15/1107/22/11

08/10/1108/19/1109/16/11

walt Disney Studios Home Entertainment - North America

TitleChimpanzeeBeverly Hills Chihuahua 3Marvel’s The Avengers

* Release Dates Subject to Change.

TitleMars Needs MomsPromThorThe TempestSpooky Buddies

Street Date08/09/1108/30/1109/13/1109/13/1109/20/11

Street Date08/21/1209/18/1209/25/12

Domestic motion pictures


Disney Channel ( a ) ESPN ( f ) (g )

AETN/Lifetime ( f )

United StatesLatin America IndiaUnited KingdomItalyTaiwanFranceJapanScandinavia (b)PolandRomania (c)Hungary/Czech/Slovakia/SloveniaAsia (d)Australia (e)Germany KoreaSouth AfricaRussia (k)PortugalIsraelTurkey (k)BeneluxSerbiaUkraine (c)Middle EastAngolaMalta

International Sub-TotalWorldwide Total

(a) United States reflects estimated subscriber counts according to Nielsen Media Research; International Disney Channels reflect reported subscribers. (b) Includes Sweden, Norway, Denmark, and Finland. (c) Ukraine was previously reported under Romania. (d) Includes Brunei, Cambodia, Hong Kong, Indonesia, Malaysia, Palau, Papua New Guinea, Singapore, Thailand, Philippines and Vietnam. (e) Numbers include New Zealand. (f) ESPN and AETN/Lifetime based on estimated U.S. subscriber counts according to Nielsen Media Research, except as noted. Our ownership interest in ESPN and AETN/Lifetime is 80% and 42%, respectively.

ESPN and A&E programming is also distributed internationally through other networks.(g) ESPNU, Lifetime Real Women, Disney XD International and Disney Jr. International based on reported subscribers. Toon Disney, which used to be included in Disney XD international, was shut down in Q1 FY12.(h) Represents estimated broadband subscribers for June 2012 and June 2011. (i) Based on estimated U.S. subscriber counts according to Nielsen Media Research. (j) H2 channel launched in Oct ‘11 (previously branded as History Int’l).(k) Russia and Turkey became free to air on January 2012.

98.837.09.9

11.34.86.1

18.75.94.96.65.74.3

3.82.63.07.42.80.02.51.10.08.41.10.70.50.30.5

150.0 248.8

98.998.874.773.232.073.0

99.199.198.884.469.968.815.5

99.831.77.89.15.56.0

16.45.64.96.35.34.1

3.32.52.61.72.04.22.31.11.46.51.00.40.40.20.5

132.6 232.4

100.1100.074.373.234.170.8

100.1100.0 99.6 82.264.7 63.7 17.0

6/30/12# subscribers(in millions)

7/2/11# subscribers(in millions)

6/30/12# Nielsen Households

(in millions)


(in millions)


(in millions)


(in millions)


(in millions)


(in millions)

Other Cable Properties

ABC Family (i)Disney XD International (g)Toon Disney (g)Disney XD Domestic (i)SOAPnet (i)Disney Jr. International (g)HungamaDisney CinemagicUTV

97.591.80.079.569.370.99.911.173.7

98.885.73.578.774.852.57.811.50.0

ESPN ESPN2 ESPNEWS ESPNU (g)ESPN Classic ESPN3 (h)

A & E ChannelLifetime TelevisionHISTORYLifetime Movie NetworkThe Biography ChannelH2 (j)Lifetime Real Women (g)

Cable Subscribers


Please note:This newsletter has been prepared by the Investor Relations group of The Walt Disney Company solely for the information of shareholders of the Company. It is not intended to be a recommendation with respect to investment decisions. All information contained in this newsletter is presented as of the date indicated below, and the Company assumes no duty to confirm, revise or update the information. Certain statements in this newsletter may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of our views and assumptions regarding future events and business performance as of the time the statements are made and we do not undertake any obligation to update these statements. Actual events may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, as well as from developments beyond the Company’s control, including international, political, health concern and military developments and changes in domestic and global economic conditions that may affect our businesses generally. Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended October 1, 2011, and in subsequent reports on Form 10-Q under Item 1A “Risk Factors.” Reconciliations of non-GAAP financial measures to equivalent GAAP financial measures are available on Disney’s Investor Relations website.

September 14, 2012

news from investor relations - the walt disney...

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