Disney Profit Dips in Q2

BURBANK: The Walt Disney Company’s second-quarter profits dropped slightly from $953 million to $942 million on revenues that were up by 6 percent to $9.1 billion.

“We are pleased with the underlying quality of our second-quarter earnings,” said Robert A. Iger, president and CEO of The Walt Disney Company. “There is great creative momentum throughout the company which gives us continued confidence in our ability to grow our businesses.”

Disney’s only division to see reduced revenues was Studio Entertainment, down 13 percent to $1.3 billion, with an operating income that plummeted 65 percent to $77 million. The results were due to lower home-entertainment and theatrical revenues globally and higher film cost write-downs.

Media Networks revenues rose 12 percent to $4.3 billion, including a 17-percent rise in cable network revenues to $2.8 billion and a 4-percent increase in broadcasting revenues to $1.5 billion. Cable operating income increased 15 percent to $1.4 billion, while broadcasting income jumped 36 percent to $167 million, for an overall 17-percent gain in segment operating profit to $1.5 billion.

Parks and Resorts revenues were up by 7 percent to $2.6 billion, but profit was down 3 percent to $145 million. Consumer products revenues were $626 million, a 5-percent increase, with profit up 7 percent $142 million. Interactive media revenues gained 3 percent to reach $159 million, but the segment reported a wider loss of $115 million, following the acquisition of Playdom.