Operating income for the division falls 38% to $162 million ” primarily due to lower advertising sales at the owned television stations and higher programming costs at the ABC Television Network.”
The Walt Disney Co. today reported earnings for its second fiscal quarter ended March 28. Broadcasting revenue dropped 2 percent to $1.415 million from $1.440 million in the year-earlier quarter.
Broadcasting operating income decreased 38 percent to $162 million for the quarter primarily due to lower advertising sales at the owned television stations and higher programming costs at the ABC Television Network due to an increase in production expenses, partially offset by increased sales of ABC Studios productions in international markets, led by Ugly Betty, Desperate Housewives and Criminal Minds.
Higher production expenses reflected more production activity during the current quarter compared to the prior-year quarter which was affected by the Writers’ Guild of America work stoppage.
“We had a difficult second quarter due to the weak economy and other factors,” said Robert A. Iger, the company’s president-CEO. “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.”
For the company as a whole, revenue fell 7 percent to $8.09 billion, while net income fell 46 percent, with sharply lower profits at its movie studio and theme parks.
Its profit in the quarter was $613 million. That amounted to 33 cents per share. The profit was down from $1.13 billion, or 58 cents per share, a year earlier.