• by Wayne Friedman , May 7, 2008

Walt Disney broadcast and cable networks continued to post strong financial results in the second quarter--even with the writers' strike disruption during the period.

Net operating income at both broadcasting and cable groups continued to climb--rising 17% to $223 million and 14% to $1.1 billion, respectively. The company says strong performances from international sales of "Grey's Anatomy" and "Lost" were the main drivers to its broadcast group.

The company said the growth was partially impacted from the writers' strike, which forced less original programming on the air, and led to lower ratings and lower advertising revenues. At the same time, individual advertising rates climbed, and lower programming costs resulted from the strike.

Cable financials moved higher, thanks to better ESPN affiliate revenue and improved income from Disney's cable equity investments in Lifetime and A&E. However, higher programming costs pulled growth back some as a result of ESPN's college basketball deals.

For all Disney media networks, revenue grew 5% to $3.6 billion on operation income growth of 14% to $1.3 billion.

Disney's much-observed parks and resorts showed a 33% improvement in operating income to $339 million and an 11% gain revenue to $2.7 billion. Disneyland Resort Paris, Walt Disney World Resort and Disney Vacation Club all posted higher revenues. The company also benefited from Easter Holiday in the period.

The company's studio entertainment business also witnessed strong results--61% gain to $377 million in operating income and 18% boost to $1.8 billion in revenue. For home entertainment, there were higher sales for "Enchanted," "Game Plan," and "No Country for Old Men."

Improved box office sales from theatrical releases occurred in "National Treasure 2: Book of Secrets" and "Hannah Montana/Miley Cyrus: Best of Both Worlds."

Disney's laggard is still in consumer products. Operating income fell 14% to $107 million on an increase of 10% in revenue to $551 million. The company says this was due to lower revenues of merchandise licensing and decreased revenue from licensed product at Disney Interactive Studios.

For the entire company, revenues climbed 10% to $8.7 billion, with net income gaining 22% to $1.1 billion.