Disney loses its shine

Disney's theme parks are suffering

The entertainment company Walt Disney has added to the US corporate gloom by reporting a 31% drop in its quarterly profits.

The company's net income for the three months ended in 30 June was $364m, compared with $527m during the same period last year.

The quarter had been hampered by some external factors and some performance issues that we are addressing

Michael D. Eisner
Walt Disney chief

However, the results were in line with analyst expectations.

A weak performance from the company's film business and struggling ABC television network was the culprit for the fall in profits.

Low attendance at the company's theme parks also prompted the company to warn that its current financial quarter might bring bad news as well.

The company's quarterly revenue fell 3% to $5.8bn, compared with last year.

Performance problems

Disney's chairman and chief executive Michael D. Eisner said: "The quarter had been hampered by some external factors and some performance issues that we are addressing".

The slump in the travel and tourism industry and the general economy has also helped to cool Disney profits, particularly in its theme park unit.

The unit, which includes Walt Disney World resort in Florida and Disneyland in California, accounted for 40% of Disney's operating income in its fiscal year 2001.

At ABC, the company is on a campaign to revive network ratings, which have dropped after the broadcaster failed to wow audiences with any hit shows.

Similarly, the film business has suffered from a lack of major sell-outs in the non-animated side of the business.