Earnings: Disney Net Income Drops 46 Percent; Interactive Rev Down 17 Percent

imageThe Walt Disney Co. (NYSE: DIS) delivered some better-than-expected results but took a big hit on profit, with net income dropping 46 percent for the quarter ending March 28. It was, to use CEO Bob Iger’s term, a “difficult” quarter. The company reported $613 million in net income on revenue of $8.09 billion, down from $1.13 billion on revenue of $8.71 billion for the same quarter in 2008. In part, that difference reflects a $305 million charge for restructuring prompted by economic conditions. Excluding special charges, though, Disney beat the street; the consensus *Thomson Reuters* estimate forecast $0.40 per share, while Disney delivered $0.43 — down 26 percent.

Operating segment details after the jump; coverage of the earnings call with Iger here.

Disney Interactive: Revenues dropped 17 percent to $219 million but the operating loss was roughly flat at $1 million. Disney said a decline in revenues from Disney Interactive Studios (because of bad comps with last year’s hit Turok) was “largely offset” by more revenue from its Japan mobile service and lower costs in marketing and admin. The Disney Interactive Media Group does not include online revenue from ESPN, ABC or Disney, which is reflected in the Media Networks segment. The segment was broken out for the first time for the last quarter, when it reported revenues of $313 million and a segment operating loss of $45 million.

Cable Networks: As has been the case with other cable programmers, this segment managed a positive performance. Revenue was up 5 percent to $1.1 billion, fueled by ESPN affiliate rate increases baked into existing deals. But that increase was offset by lower ad rev and higher programming costs for sports rights.

Broadcasting: ABC’s revenue dropped 2 percent to $1.4 billion but operating income nosedived 38 percent to $162 million. Blame it on lower ad sales on the local and national level and higher costs.

Earnings release (pdf) | Webcast

Photo Credit: Reuters

Comments have been disabled for this post