Fiscal Year 2011 Annual Financial Report And Shareholder Letter
January 2012 Dear Shareholders, Fiscal 2011 was a year of great accomplishment for The Walt Disney Company, marked by creativity and innovation across our businesses globally, record financial results and numerous important steps to position the Company for the future. While 2011 brought us so much to cheer about, it was also marked by profound loss, with the passing of Steve Jobs. Steve’s incredible stewardship of Pixar, and his decision to sell Pixar to Disney in 2006, brought Steve into the Disney family, as a board member, a shareholder, a mentor, and a friend, and we were so lucky for all that he represented and all that he contributed. Disney, ESPN, ABC, Pixar, and Marvel are an amazing collection of brands that grow stronger every day as new platforms and new markets provide enormous new opportunities for high quality content and experiences. To that end, we are fortunate to have a talented group of employees who are committed day in and day out to building our brands around the world. Since becoming President and CEO in 2005, I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally. In fiscal 2011, net income attributable to Disney was a record $4.8 billion, an increase of 21% over last year, and revenue was a record $40.9 billion, up 7% from last year. Diluted earnings per share increased by 24% to a record $2.52. I’m particularly gratified by our outstanding performance in fiscal 2011, given the challenging global economic environment. Our financial and capital strength has allowed us to make important near and long term investments, two of the most significant being Pixar and Marvel. Animation is the heart and soul of Disney, and since becoming part of the Company nearly six years ago, Pixar has greatly advanced Disney’s animation studio with incredible creativity and technological innovation as well as bringing us beloved new characters, magical stories, and an unprecedented number of hit movies. With Iron Man, Thor and Captain America, we have just begun to mine Marvel’s rich roster of characters and stories, and leverage them across our businesses to create all-important franchises. We’ve made significant long-term investments in our parks and resorts, enhancing and expanding guests’ experiences. In 2012, several of those investments in new lands and attractions are opening, including Disney California Adventure’s Cars Land where guests will journey to the 12-acre Radiator Springs. Like World of Color, which opened in 2010, we believe Cars Land will be a huge draw. This spring, we will also launch the Disney Fantasy, the sister ship to the Disney Dream, which has been extremely popular since making its maiden voyage a year ago. The Disney Fantasy is an exciting addition to our fleet, which has set a new standard in the cruise industry providing outstanding high-quality service and memorable experiences. We are pleased with the successful opening of our redesigned Disney Stores, which have been transformed into an immersive, interactive experience with our cherished characters, classic stories and unmatched brands at new and renovated locations worldwide. We are also becoming an integral part of new parents’ lives providing important information, entertainment, and nursery necessities through the launch of disneybaby.com as well as through our recent acquisition of the premiere parent blogging site, Babble, and the 2012 opening of a pilot Disney Baby retail store. For nearly 90 years, Disney has been dedicated to creating timeless stories that can be enjoyed and treasured by audiences everywhere. One of our most popular franchises, Pirates of the Caribbean, returned to the theaters last year with the fourth installment, On Stranger Tides, and became Disney’s fourth film to surpass the billion-dollar mark. Cars...
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