Revenue from ABC and ESPN fell 2% to $3.96 billion, driven by lower advertising revenue at ESPN.
BURBANK, Calif. (AP) — Family entertainment company The Walt Disney Co. said Thursday its fiscal third-quarter profit fell 26 percent from a year ago, hurt by the tough global economy.
Net income in the three months ending June 27 sank to $954 million, or 51 cents per share, from $1.28 billion, or 66 cents per share, in the same period a year ago.
Revenue fell 7 percent to $8.6 billion, from $9.24 billion, a year ago.
After excluding a restructuring and impairment charge of a penny per share, adjusted income was 52 cents per share.
That barely beat analysts expectations of 51 cents per share of earnings, but the revenue figure was below estimates of $8.83 billion, according to Thomson Reuters.
“While a tough global economy impacted our performance in the quarter, we remain encouraged by the relative strength of our business,” Chief Executive Robert Iger said in a statement.
Revenue from ABC and ESPN fell 2 percent to $3.96 billion, driven by lower advertising revenue at ESPN.
Parks and resorts revenue fell 9 percent to $2.75 billion as guests spent less, but Chief Financial Officer Tom Staggs said in a conference call with journalists that the company was “pleased with the attendance overall.”
Movie studio revenue fell 12 percent to $1.26 billion as this year’s home video slate didn’t compare well to last year’s releases, which included “National Treasure: Book of Secrets” and “Enchanted.”
Consumer products revenue fell 10 percent to $510 million.
Shares fell 57 cents, or 2.2 percent, to $25.65 in extended trading Thursday. Before the release of results, shares closed up 33 cents, or 1.3 percent, at $26.22.