Disney theme park bookings down, shares slide
2 hrs 52 mins ago
LOS ANGELES (Reuters) The Walt Disney Co on Thursday said bookings at its theme parks have declined "considerably" in the last month as the global economy has soured, and its shares slid 9 percent in extended trade.
The news came as the No. 2 U.S. entertainment company reported a 13 percent decline in quarterly net income due in part to a bad debt charge. Revenue for the period, however, topped Wall Street analysts' estimates.
Disney said the advertising climate had softened the performance of its cable and broadcast networks, and that its U.S. theme parks and resorts suffered under higher labor and fuel costs.
In addition, on a conference call with analysts, executives said attendance at its U.S. theme parks is down 1 percent so far in the current quarter and that bookings for the first two quarters of fiscal 2009 are down "a little under 10 percent" from last year.
"We are seeing a marketplace that is clearly tougher than it was in fiscal year 2008 and our ability to predict is very limited." Chief Executive Bob Iger said.
Disney reported net earnings of $760 million, or 40 cents per share, compared with net earnings of $877 million, or 44 cents per share in last year's fourth quarter.
Excluding items, Disney posted earnings of 43 per share. On that basis, analysts had been expecting earnings of 49 cents a share, according to Reuters Estimates.
Revenue rose 6 percent to $9.45 billion from $8.93 billion a year earlier. Analysts, on average, expected revenue of $9.33 billion for the quarter, according to Reuters Estimates.
Disney's theme parks showed a 7 percent increase in revenue during the quarter, helped by higher guest spending. But operating profit at the unit fell 4 percent due to higher labor costs at Walt Disney World and increased fuel costs at the
Disney Cruise Line.
Media networks showed 4 percent revenue growth but flat operating profit in the fourth quarter due to lower advertising revenue at its broadcast division, as well as higher costs for pilot television programs and coverage of the U.S. presidential election.
Revenue from consumer products rose 41 percent and profits rose 14 percent, driven by licensing revenue from popular brands such as "Hannah Montana" and "High School Musical."
Studio entertainment revenue and operating profit fell due to weaker movie titles and higher marketing expenses for fourth-quarter releases including "Beverly Hills Chihuahua."
Disney has seen its share price fall nearly 25 percent since its fiscal fourth quarter ended September 27, as the Dow Jones Industrial average declined about 20 percent.
Shares of Disney fell 8.8 percent to $20.81 after closing down 5.9 percent at $22.81 on Thursday.
