Disney hit by 'difficult' Q2

Profits drop 46 per cent, but consumer products up nine per cent thanks to US retail acquisition.
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The Walt Disney Company has reported its results for its second fiscal quarter and six months ending March 28th 2009 - showing that even one of the biggest entertainment companies in the world isn't immune to the changing economic climate.

Profits for the group as a whole dropped 46 per cent in the period. The firm reported net income of $613 million for the three months to March 28th, down from $1.1 billion the previous year. Revenue also dropped to $8 billion.

However, consumer products actually saw a lift of nine per cent, to revenue of $496 million. This increase was due to the acquisition of Disney Stores North America in the third quarter of fiscal 2008, partially offset by a decrease in earned royalty revenue at merchandise licensing.

Segment operating income was down by 24 per cent to $97 million, however.

"We had a difficult second quarter due to the weak economy and other factors," admitted Robert Iger, president and CEO of the Walt Disney Company. "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."

Other areas of the group, such as studios, parks and resorts, also saw declines in the quarter.

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