US theme parks boost Walt Disney

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Disney's profits have climbed helped by a rise in the number of people visiting its US theme parks and more advertising on its ESPN sports television network.

Net income rose 12% to $877m (£418m) in the quarter ending 29 September, compared with $782m a year earlier.

Walt Disney said its US theme parks benefited from the weak dollar as it kept Americans from travelling abroad.

Chief executive Bob Iger said that a slowdown in US economic growth had yet to hit advertising and consumer demand.

One part of the business that was affected, however, was Disney's film studio.

Thus far, our businesses remain strong, and we have not seen indications of a downturn in the economy Thomas Staggs, Disney's chief financial officer

It posted a 21% drop in operating income from a year earlier when earnings were boosted by blockbuster films including "Pirates of the Caribbean: Dead Man's Chest".

No weakness

In an effort to keep demand strong, Disney said it would spend $250m-$300m in the new fiscal year, which runs from October to October, on improvements at its theme parks, studio and networks.

"Thus far, our businesses remain strong, and we have not seen indications of a downturn in the economy," said Thomas Staggs, Disney's chief financial officer.

The ESPN cable channel was one of Disney's growth drivers due to higher advertising rates and more subscribers.

Despite the fact that profits have risen, there are a number of factors that could dent earnings in coming months, analysts said.

Disney boss Mr Iger warned that if a Hollywood writers strike lasted more than four weeks, it could start to affect Disney's profits as TV shows and films were cancelled or delayed.

Work practices

Earlier this week, the US entertainment giant said it was investigating allegations of labour abuse at a factory in China.

Disney has sent a team of local auditors to the Tianyu Toys factory, which makes stuffed toys.

"During the peak season, before Christmas, workers at the factory start at 0800 and don't finish until midnight," Jenny Chan of Students and Scholars Against Corporate Misbehaviour told the Associated Press news agency.

The owner of Tianyu Toys denies the allegations.

Alannah Goss, Walt Disney's spokeswoman, said that "whenever we hear of these allegations, we take them very seriously".