Q2 Disney Profit Down 46 Percent

BURBANK: The Walt Disney Company’s net profit in the second quarter dropped 46 percent to $613 million, on revenues that were 7-percent lower at $8.09 billion, largely as a result of a weaker performance at the studio entertainment division.

"We had a difficult second quarter due to the weak economy and other factors," said Robert A. Iger, the president and CEO of Disney. "At the same time, we remain focused on our core business strategy and believe our creativity, brands and businesses will serve us well as the economy recovers."

The company’s studio entertainment division took the biggest hit, with revenues down 21 percent to $1.4 billion and operating income plummeting 97 percent to $13 million. Disney reported decreased U.S. home entertainment and worldwide theatrical distribution revenues.

The media networks fared better, with revenues up 2 percent to $3.6 billion and operating income down 4 percent to $1.3 billion. Cable networks posted a 4-percent revenue gain to $2.2 billion, delivering an increased operating income of $1.1 billion. The gains were led by ESPN, ABC Family and Disney Channel U.S. Broadcasting revenues, however, fell 2 percent to $1.4 billion and operating income fell by 38 percent to $162 million, hurt by lower ad sales at local stations and higher expenses at the ABC network.

Parks and resorts revenues were down 12 percent to $2.4 billion, with an operating income of $171 million, down 50 percent. Consumer products revenues were up by 9 percent to $496 million, with an operating income of $97 million. And interactive media revenues fell 17 percent to $129 million, with the division posting a loss of $61 million.