BBC News Online: Business

Theme parks depress Disney profits

Disney theme parks: income down

The firm, reporting third-quarter profits of $479m, revealed a 1% drop in operating income from the theme park division, with a cost-cutting drive implemented at Disney World in Florida to offset a drop in visitor numbers.

"At our parks, effective expense management measures have largely compensated for the weaker attendance that we anticipated," chairman Michael Eisner said.

Income from Disney's broadcasting arm, which owns the ABC television network, plunged 29%, as sales dropped 6% in the face of a sluggish advertising market.

Studios outperform

But Disney reported strong earnings from its studio division, boosted by the films Spy Kids and Pearl Harbor, which has grossed more than $193m at US box offices so far.

"Our studio has added yet another quarter... of strong growth," Mr Eisner said.

The profits figure was equal to earnings of 23 cents a share, beating Wall Street expectations of 21 cents a share.

But the results, released after the close of markets, came too late to prevent Disney shares sliding $0.12 to $26.55 on Thursday.

The shares surged to $27.35 in after-hours trading.

Disney is the world's second largest media and entertainment conglomerate, after AOL Time Warner.