• by Wayne Friedman , February 9, 2010

Walt Disney's television networks, film and TV production studios improved profitability, helping to keep the media company's earnings stable versus the same quarterly period a year ago.

Disney pulled in $844 million for the fiscal first quarter versus $845 million for the fiscal first quarter a year ago. Revenues improved slightly -- 1% to $9.74 billion from $9.65 billion.

Disney's media networks gained 11% in operating income to $724 million, and 7% in revenue to $4.2 billion.

Breaking this down, cable networks improved 5% in operating income to $544 million, with its broadcasting businesses rising 30% to $180 million. Cable networks' revenue was up 8% to $2.6 billion, and broadcasting was 5% higher to $1.5 billion.

Disney noted some difficulties, however. ABC Television Network had lower prime-time ratings and advertising revenues -- although scatter deals on a CPM viewer basis were 20% above deals made during last summer's upfront.

Jay Rasulo, senior executive vice president and CFO of Walt Disney, says first-quarter 2010 scatter deals are now running 30% higher on CPMs. He added that advertisers continue to make decisions closer to air date, which means a tougher time in gauging future ad projections.

ABC-owned television stations had lower advertising revenue, due to higher political advertising sales in the prior-year quarter. But those stations are pacing strong results in the first-quarter calendar year versus a year ago.

Despite current recall car problems at Toyota, Bob Iger, president and CEO of Walt Disney Co., says the company "has not seen any impact due to Toyota's issues" across any of its TV businesses. Overall, Iger says the ad market continues to be "not as strong as it was 18 months ago."

Both ESPN and Disney Channel gained affiliate revenues -- and contributed to the strong cable network results. ESPN gained mid-single-digit increases in ad sales over the same quarter of a year ago. ESPN continues to pace 5% ahead of first quarter calendar results of a year ago.

Studio entertainment rose 30% in operating income to $243 million, but slipped 1% to $1.9 billion. Higher operating income came from domestic home entertainment, partially offset by decreases in domestic theatrical distribution and music distribution.

Parks and Resorts revenues were essentially flat at $2.7 billion, but operating income decreased 2% to $375 million. Disney said there was a decrease in business from Disneyland Paris in terms of attendance and lower hotel occupancy.

Room reservations were 10% behind the pace of a year ago, according to Rasulo. Consumers are making decisions closer to travel dates.