Disney Releases Q1 Results

BURBANK: At The Walt Disney Company, first-quarter 2009 revenues fell 8 percent to $9.6 billion, while net profit took a 32-percent hit, falling to $845 million.

"We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn," said Robert Iger, Disney’s president and CEO. "We are forcefully confronting current circumstance while investing in the great creativity, brands and assets that are Disney’s strengths and keys to its long-term success."

At the Media Networks, revenues fell 5 percent to $3.9 billion, with operating income down 29 percent to $655 million. While the cable networks showed a 2-percent increase in revenues to $2.5 billion, operating income fell 12 percent to $517 million as a result of decreases at the U.S. Disney Channels and ESPN. For Disney Channel, the financials reflect lower DVD sales as compared with the previous year, when the company released High School Musical 2. At ESPN, the fall was attributed to lower ad revenues and higher costs, partially offset by increased affiliate revenues. In the broadcasting segment, meanwhile, revenues were down 14 percent to $1.4 billion and operating income dropped 60 percent to $138 million as a result of lower ad revenues at ABC and its station group plus a bad debt.

Studio Entertainment revenues fell 26 percent to $1.9 billion, with an operating income of $187 million, a 64-percent fall. Lower DVD sales were cited as a reason for the decreases.

Parks and Resorts revenues fell 4 percent to $2.7 billion, while operating income was down 24 percent to $382 million. Consumer Products revenues, however, were up 18 percent to $773 million, thanks to the acquisition of Disney Stores North America. Operating income fell 8 percent to $265 million. And in the Interactive Media segment, revenues were up 13 percent to $313 million, but the division posted an operating loss of $45 million.