The Walt Disney Company’s results in the third quarter revealed a profit drop of 26% to $954 million on revenues that were 7% lower at $8.6 billion. The decrease in profit is attributable to a weakened ad market and decreases in home-entertainment and TV distribution.
"While the tough global economy impacted our performance in the quarter, we remain encouraged by the relative strength of our business," said Robert A Iger, president and CEO. "That strength is the result of Disney’s combination of strong brands, consistent business strategy and the steps we’ve taken to make our business more efficient without sacrificing quality."
Media networks revenues fell 2% to $3.96 billion, with cable revenues steady at $2.6 billion and broadcasting revenues down by 4% to $1.4 billion. Operating income at the cable networks fell 8% to $1.1 billion, while in the broadcasting division operating income showed the greatest loss – down 34% to $204 million. Overall media networks operating income fell 13% $1.3 billion.
The studio entertainment division posted a $12 million loss, as compared with the year-ago profit of $97 million, and revenues fell 12% to $1.3 billion. The segment was hurt by a decrease in worldwide home entertainment and TV distribution.
