The Walt Disney Co. (NYSE: DIS) came down to earth in Q2 with double-digit declines in net income, down 26 percent to fall below $1 billion, and earnings per share, down 16 percent. That comes close to making a revenue drop of only 7 percent a bright spot. Disney split the difference on analysts’ estimates from “Thomson Reuters*, beating EPS expectations by a penny, and failing on the revenue side. (See chart below for the numbers.) The underlying message, though: given the economy, it could have been a lot worse.
|2Q 2009||2Q 2008||Estimates|
Some segment results:
— Interactive Media: The Disney Interactive Media Group, which doesn’t include the network sites or digital efforts in other segments, turned in better results on lower revenue. Sales dropped 20 percent, to $113 million from $142 million in the same quarter in 2008, but losses were cut to $75 million from $91 million because of lower marketing and product development costs.
— Media networks: A narrow 2 percent drop in revenues to $3.96 billion from $4 billion in 2008, while operating income sunk 13 percent to $1.3 billion. Broadcast was the biggest problem in the latter, with operating income down 34 percent compared to 8 percent for the far more lucrative cable networks group. Broadcast was hit by the evil combo of higher primetime costs and lower ads sales locally and at ABC.