Media heavyweight Walt Disney saw its stock slide 14% yesterday, despite posting improved results for the year.
The fall followed a downgrade of analysts’ valuation of the media sector, with NewsCorp also suffering a decline in stock value.
Disney announced a revenue boost of 9% to $25 billion over the year. Earnings were up 44% to $1.9bn, excluding web-related losses.
Revenues at the media networks division, encompassing the ABC TV network, jumped 21%. The uplift was attributed to the British-conceived television phenomenon Who Wants to be a Millionaire and a healthy advertising market.
Yearly revenues at the Walt Disney World theme park also rose 11% to $6.8bn, but there was a downturn in the fortunes of the group’s film studios and consumer products interests.
News source: Financial Times