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Tuesday, May 30, 2023

Disney Income Drops in Q1

A drop off in revenues at its theme parks and for its television programming and feature films contributed to The Walt Disney Co. posting a 32 percent decrease in net income for its first quarter when compared to a year ago. The Burbank-based entertainment and media conglomerate posted a net income of $845 million, or $0.45 per diluted share, on revenues of $9.6 billion for the quarter ending Dec. 27. For the same period in 2007, the company had net income of $1.25 billion, or $0.63 per diluted share, on revenues of $10.5 billion. Consumer Products and Interactive Media were the only two business segments posting an increase in revenue for the first quarter over a year ago. The revenue increase at Consumer Products was due to the acquisition of the Disney Stores North America. Media Networks, Parks and Resorts and Filmed Entertainment all registered lower revenues from a year ago. Attendance dropped off at the U.S. theme parks and at resort hotels. Broadcasting and cable revenues were affected by lower advertising on the ABC Network and ESPN. “We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn,” said President and CEO Robert A. Iger. “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.” Shares in Disney closed up at $20.62.

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