• by Wayne Friedman , November 10, 2006

Powered by strong box-office film results, growth in its amusement parks and big gains in its cable networks, Walt Disney Co.'s fourth-quarter net income more than doubled.

Net income jumped to $782 million, or 36 cents a share. This was better than analysts' expectations of 34 cents a share. Revenue was at $8.8 billion.

Media networks' net income climbed 18%, while revenue climbed 10%. Revenue from Disney's cable networks was 16% higher, while operating income from that unit increased 22%, thanks to a strong performance from its ESPN network.

In broadcasting, ABC posted a 1% gain in revenue, but a 40% decline in profitability. The high cost of rolling out Disney's branded mobile-phone services contributed to that result. The company said that average cost for programming in prime time was about even versus that of last year.

Broadcasting ad revenue continued to make gains, as the company said it had good results from the upfront and is seeing a robust spot market for its stations. Concerning some of Disney's digital activities, the company that since May, ABC had 19 million streams from six prime-time shows that stream through its ABC.com site. Some 36 advertisers have signed on.

Bob Iger, chairman of Walt Disney Co., says digital opportunities have been lucrative. "CPM rates are four to five times that of [network] prime time," said Iger. "Recall rates for those advertisers have been tremendous. As we build that out, we'll be able to grow advertising significantly."

Disney will spend $400 million to $500 million in overall capital expenditures next year, with roughly half going to theme parks for new attractions, and another chunk to new costs for programming at ESPN.

Disney's studio-entertainment group made the biggest strides--posting operating income of $214 million, compared to a loss of $313 million a year ago. Much came from a 33% jump in revenue, thanks to big box-office returns from "Pirates of the Caribbean: Dead Man's Chest," along with lower operating costs at its Miramax film unit.