Disney profits down
May 6, 2009
A weaker than expected performance by its films at the box office and through DVD sales depressed Disney's second-quarter profits. Operating income at Disney's studio business fell 97 per cent to $13 million.
The recession also continued to depress earnings in other parts of the group, with advertising down at Disney's ABC television network. But ESPN, Disney's sports cable network, ABC Family and the Disney Channel fared better, with operating profits up.
Net income for the quarter fell from $1.13 billion to $613 million, although this included a $305 million restructuring and impairment charge, which related to radio licences, an investment in UTV, an Indian media company, and a recent round of job cuts at the theme parks. Revenues fell from $8.7 billion to $8.1 billion.