Writers strike hurt, but Disney's 2Q profit still climbs

The strike also raised prices in the spot ad market as the lull in network shows shrunk available ad time. That bodes well for the upfront sales presentation to advertising agencies set for Tuesday in New York, which will affect pricing for the coming fall TV season, Disney Chief Executive Robert Iger said.

"The fact that ratings are returning to ABC since the work stoppage, we think we're in good shape revenue-wise for the rest of the year," he told analysts on a conference call.

The company said Monday it earned $1.13 billion, or 58 cents per share, in the quarter ended March 29, compared with $931 million, or 44 cents per share, a year earlier. Revenue grew 10 percent to $8.71 billion.

Analysts expected earnings of 51 cents per share on $8.47 billion in revenue, according to Thomson Financial.

Disney shares jumped 96 cents, or 2.9 percent, to $34.69 in after-hours trading. The shares gained 44 cents to end the regular trading session at $33.73 before the earnings were announced.

Disney said international sales of shows such as "Grey's Anatomy" helped revenue from Disney's media networks grow 5 percent to $3.61 billion, despite the 100-day writers strike that ended in February.

The company also said a weak U.S. dollar helped keep American vacationers closer to home and attracted tourists from abroad, increasing theme park attendance and spending.

Parks and resorts revenue grew 11 percent to $2.73 billion, and hotel bookings through 2008 were trending higher than last year, the company said.

A cheaper mix of hotel room offerings and bargains for extended stays also kept tourists coming, Iger said. Domestic park attendance was up 5 percent, while parks in Paris and Hong Kong saw double-digit increases.