PALM BEACH, Florida: The Walt Disney Company's net income fell by 32% to $845 million (€657m; £585m) in its fiscal first quarter, with revenues also down by 8.2% to $9.59 billion as the Mouse House fairytale collided with bitter economic reality.
Operating income declined across all of Disney's operations, including a 64% contraction at its movie studio, and a 29% fall at its media networks.
Its broadcasting unit's operating income also fell from $205 million to $138 million, with sports network ESPN and the Disney Channel both posting declines as the advertising market weakened.
Declining ad revenues at ABC and slowing DVD sales – traditionally a main source of income – over the holiday season also contributed to the overall slide.
The company's president/ceo Robert Iger argues the current financial situation is "the weakest economy in our lifetime”, but added that this was compounded by failings in the business models of some of the company's units.
Operating income declined across all of Disney's operations, including a 64% contraction at its movie studio, and a 29% fall at its media networks.
Its broadcasting unit's operating income also fell from $205 million to $138 million, with sports network ESPN and the Disney Channel both posting declines as the advertising market weakened.
Declining ad revenues at ABC and slowing DVD sales – traditionally a main source of income – over the holiday season also contributed to the overall slide.
The company's president/ceo Robert Iger argues the current financial situation is "the weakest economy in our lifetime”, but added that this was compounded by failings in the business models of some of the company's units.
Data sourced from Wall Street Journal Online; additional content by WARC staff
