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Disney's Profits Clobbered By Tough Consumer Climate

Disney Co.'s third-quarter profits were down 25% with revenues from theme parks, television advertising home entertainment sales all taking a hit, Matthew Garrahan reports.

CEO Bob Iger says the company has detected signs of "economic stabilization" but adds that the "pace and strength of the recovery remain uncertain." The company will continue to cut cost at its studio, Iger says, in light of a changing business model for the film industry. "The old notion that you can make money from everything is not the case anymore," he said.

Theme park revenues fell 9% and DVD sales were off. Box office receipts were up, however, thanks to the computer-animated "Up" and "The Proposal" starring Sandra Bullock. And global expansion continues apace. Disney is keen to open a theme park in Shanghai, will expand its Hong Kong operation, and is expanding ESPN's operations in Europe.



Read the whole story at Financial Times »

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