Embattled Walt Disney chief executive Michael Eisner won some breathing space last night when the entertainment group posted a sharp rise in profits.
Second quarter profits of $537m (£306m) were up from $314m a year ago. Disney also raised its earnings forecast for the full year to 50% higher than 2003.
The figures will be a welcome relief for Mr Eisner who has spent much of the year fending off criticism from shareholders and former board members as well as fighting a takeover bid from America's biggest cable company, Comcast.
He was removed as chairman after an unprecedented revolt by investors at the annual meeting in March.
Disney shares have risen 22% in the past year and they climbed as much as 80 cents to $23.80 in extended trading on Wall Street last night. Mr Eisner said the company was benefiting from the "long-term growth strategies" in place.
The main drivers of the 71% increase in quarterly earnings were increasing attendances at Disney's theme parks and improving revenues at the company's cable networks, in cluding the valuable sports business ESPN. The theme parks, which have struggled to recover from the impact on tourism of the 2001 terrorist attacks, reported a 21% increase in profits to $188m.
DVD sales were also better than anticipated with strong sellers including Finding Nemo and Pirates of the Caribbean. The movie studio was not as impressive. Operating income fell 26% to $153m as films including Cold Mountain, Hidalgo and The Alamo disappointed. Group revenues climbed 11% to $7.2bn.
Comcast withdrew its offer for Disney after being rebuffed, but Mr Eisner continues to face obstacles.
He needs to fix the American TV network ABC, which continues to lag behind Fox, CBS and NBC in ratings and advertising revenues. Disney recently made sweeping changes to management in the hope of injecting new life into the network. It is hoping for profitability by the end of 2005.
Dissident former board members Roy Disney and Stanley Gold, who led the shareholder rebellion, are keeping up the pressure. They are said to be considering their next move, including legal action.
