The Walt Disney Company Reports Results for the Second Quarter and Six Months Ended April 1, 2006; EPS for the second quarter increased 19% to $0.37 compared to $0.31 in the prior-year quarter.

BURBANK, Calif. -- The Walt Disney Company (NYSE:DIS) today reported earnings for the second quarter and six months ended April 1, 2006. Diluted earnings per share (EPS) for the second quarter increased 19% to $0.37, compared to $0.31 in the prior-year quarter. For the six-month period, diluted EPS increased 16% to $0.74, compared to $0.64 in the prior-year period.

"Disney's ongoing commitment to creative and operational excellence is evident in our strong second quarter results," said Robert A. Iger, president and CEO of The Walt Disney Company. "At the same time, the strategic initiatives we pursued during the quarter help position us for future creative success, new opportunities to reach consumers with our products, and long term value creation for our shareholders."

The following table summarizes the second quarter and six month results for fiscal 2006 and 2005 (in millions, except per share amounts):

 
Quarter Ended               Six Months Ended 
            -----------------            ------------------- 
            April 1, April 2,            April 1,  April 2, 
              2006     2005     Change     2006      2005      Change 
            -------- -------- ---------- --------- --------- --------- 
 
Revenues    $8,027   $7,829         3  % $16,881   $16,495       2  % 
 
Segment 
 operating 
 income 
 (1)(2)     $1,434   $1,343         7  % $ 2,813   $ 2,710       4  % 
 
Net income  $  733   $  657        12  % $ 1,467   $ 1,343       9  % 
 
Diluted EPS $ 0.37   $ 0.31        19  % $  0.74   $  0.64      16  % 
 
Cash provided 
 by 
 operations $1,602   $  972        65  % $ 2,181   $ 1,128      93  % 
 
Free cash                   greater                        greater 
 flow (1)   $1,343   $  546  than  100 % $ 1,719   $   355  than 100% 
 
 
(1) Aggregate segment operating income and free cash flow are non-GAAP 
financial measures. See the discussion of non-GAAP financial 
measures that follows below. 
 
(2) Beginning in the first quarter of fiscal 2006, segment operating 
income includes equity in the income of investees. Results for the 
quarter and six months ended April 2, 2005 have been reclassified to 
conform to the current year presentation. 

SEGMENT RESULTS

The following table summarizes the second quarter and six months segment operating results for fiscal 2006 and 2005 (in millions):

 
Quarter Ended           Six Months Ended 
                   -----------------        ------------------- 
                   April 1, April 2,        April 1,  April 2, 
                     2006     2005   Change   2006      2005    Change 
                   -------- -------- ------ --------- --------- ------ 
 Revenues: 
 Media Networks    $3,551   $3,008    18  % $ 7,225   $ 6,469    12  % 
 Parks and Resorts  2,251    2,096     7  %   4,653     4,214    10  % 
 Studio 
  Entertainment     1,774    2,260   (22)%   3,819     4,622    (17) % 
 Consumer Products    451      465    (3)%   1,184     1,190     (1) % 
                   -------- --------        --------- --------- 
                   $8,027   $7,829     3  % $16,881   $16,495     2  % 
                   ======== ========        ========= ========= 
Segment operating 
 income (1) (2): 
 Media Networks    $  969   $  806    20  % $ 1,575   $ 1,371    15  % 
 Parks and Resorts    214      183    17  %     589       432    36  % 
 Studio 
  Entertainment       147      241   (39) %     275       564   (51) % 
 Consumer Products    104      113    (8) %     374       343     9  % 
                   -------- --------        --------- --------- 
                   $1,434   $1,343     7  % $ 2,813   $ 2,710     4  % 
                   ======== ========        ========= ========= 
 
(1) Aggregate segment operating income and free cash flow are non-GAAP 
financial measures. See the discussion of non-GAAP financial measures 
that follows below. 
 
(2) Beginning in the first quarter of fiscal 2006, segment operating 
income includes equity in the income of investees. Results for the 
quarter and six months ended April 2, 2005 have been reclassified to 
conform to the current year presentation. 

Media Networks

Media Networks revenues for the quarter increased 18% to $3.6 billion and segment operating income increased 20% to $969 million driven by strong performance at Broadcasting. The following table provides further detail of Media Networks results (in millions):

 
Quarter Ended              Six Months Ended 
              -----------------            ----------------- 
              April 1, April 2,            April 1, April 2, 
                2006     2005     Change     2006     2005     Change 
              -------- -------- ---------- -------- -------- --------- 
 Revenues: 
 Cable 
  Networks    $1,772   $1,622         9  % $3,637   $3,429       6  % 
 Broadcasting  1,779    1,386        28  %  3,588    3,040      18  % 
              -------- --------            -------- -------- 
 
              $3,551   $3,008        18  % $7,225   $6,469      12  % 
              ======== ========            ======== ======== 
 
Segment operating 
 income: 
 Cable 
  Networks    $  809   $  768         5  % $1,181   $1,208      (2) % 
 
                              greater                      greater 
 Broadcasting    160       38   than 100 %    394      163…