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 Disney News, Disney World News |
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Last Updated: Apr 21, 2009 - 9:08:32 AM
By wdwinfo.com
Nov 6, 2008
The Walt Disney Company reported a 13% decline in its fourth quarter earnings for the fiscal period which ended on September 27. This is a result in downturns it its movie, media and theme park divisions.
Robert Iger, Disney Chief Executive Officer, stated "This is clearly a difficult and unpredictable time and, while our businesses aren't immune, the strength of our assets, brands and management team positions us well for the long term."
In comparison to last year's $877 million (44 cents a share) for the same quarter, this year's numbers were $760 million (40 cents a share). With a one time bad debt deduction for Lehman Brothers holdings, Disney saw earnings of 43 cents a share, falling short of the 49 cents predicted by financial analysts.
According to the financial statement, the theme parks and resorts saw business falling by 4% with a 7% rise in revenue. Part of the decrease is attributed to higher labor costs. While Disney's theme park attendance was strong in the first half of the year, the recent increases in gasoline and rising airline ticket costs are impacting expected earnings.
In Disney's entertainment division, revenue was down 5%. The downturn is attributed to increased marketing costs and fewer movies being released by the company.
Disney's ABC network and cable channels saw a 4% drop in earnings with revenue rising by 4%. While the cable earnings rose 11%, the broadcast division saw a $150 million loss.
Following the release of the quarterly figures, Disney's shares were down by 1.9% to $22.87 in after hours trading.
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