Walt Disney profits hit by downturn, drop 32%

Walt Disney profits hit by downturn, drop 32%
PTI
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First Published: Wed, Feb 04 2009. 02 56 PM IST
Updated: Wed, Feb 04 2009. 02 56 PM IST
New York: With the global downturn impacting several of its businesses, diversified media and entertainment firm Walt Disney Company has reported a fall of 32% in net income at $845 million in the quarter ended December 2008.
The company had a net income of $1.25 billion in the December quarter of the previous fiscal, Walt Disney said in a statement.
Revenues of the firm had declined to $9.6 billion for the first quarter of fiscal 2008-09 (October-December) from $10.45 billion in the year-ago period.
The company’s Media Network business witnessed a 29% drop in operating income to $655 million and revenues declined 5% to $3.9 billion, due to weaker advertising sales at ESPN and lower DVD sales at the Disney Channels.
Commenting on the results Disney president and chief executive officer Robert A. Iger said, “We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn.
“We are forcefully confronting current circumstance while investing in the great creativity, brands and assets that are Disneys strengths and keys to its long-term success,” Iger said.
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First Published: Wed, Feb 04 2009. 02 56 PM IST