Disney hit by economic slowdown

Disney reported a sharp decline in hotel bookings in its theme parks

Entertainment company Walt Disney has reported lower-than-expected profits for the fourth quarter after feeling the effects of the economic slowdown.

The firm reported net earnings of $760m (£485m), down from $870m a year ago. Revenue grew to $9.45bn from $8.93bn.

"Consumer confidence is the lowest we've seen in over three decades," said chief executive Robert Iger.

Disney reported a sharp drop in hotel bookings and the tougher advertising climate hit its television networks.

Disney owns the ESPN and ABC television networks as well as theme parks and resorts

Its fourth-quarter results were also hit by a bad debt charge, as the firm set aside cash to deal with the consequences of the bankruptcy of Lehman Brothers.

Mr Iger predicted tough times ahead because of lower consumer spending despite "great demand in the marketplace".

"That could impact us possibly during the holiday season but almost certainly during calendar season 2009," he added.