I wonder if Disney will re-think its aggressive expansion of DVC or its constant price increases for park tickets etc, given this news:
Disney profit sinks 7%
November 11, 2010|By Jason Garcia, Orlando Sentinel
JACOB LANGSTON, ORLANDO SENTINEL:
Walt Disney Co. profit sank 7 percent during the final three months of its fiscal year, disappointing Wall Street as one-time adjustments dragged down the company’s television networks and theme parks and more than offset gains from the blockbuster movie “Toy Story 3.”
Business remained soft at Walt Disney World during the July-through-September period, though the company said the resort’s fall bookings are beginning to pick up.
“Overall, we’re encouraged by many of the trends we’re seeing in our businesses,” Disney Co. Chief Financial Officer Jay Rasulo said during a Thursday afternoon conference call with analysts.
Disney made $835 million during the quarter, which ended Oct. 2, down from $895 million last year. Revenue dipped 1 percent to $9.7 billion.
The results were hampered by the timing of certain revenue at the ESPN cable-TV network and a quirk in the company’s accounting calendar that left this year’s fiscal fourth quarter with one less week than last year’s fourth quarter.
Disney’s full-year profit leapt 20 percent to just under $4 billion on revenue that was up 5 percent to $38.1 billion, thanks in large part to continuing advertising and affiliate-fee gains at ESPN and a slate of hit films that included “Toy Story 3,” “Alice in Wonderland” and Marvel Entertainment’s “Iron Man 2.”
Disney President and Chief Executive Officer Bob Iger called the year “a good one financially and strategically for our company.”
It was another difficult one, however, for the company’s theme-park unit. Operating income at Walt Disney Parks and Resorts fell 7 percent for the year, to $1.3 billion — the only one of Disney’s five main segments in which profit fell. Sales inched up 1 percent to $10.8 billion.
That annual performance included a fourth quarter in which operating profit sank 8 percent to $316 million on revenue of $2.8 billion, down 1 percent from a year earlier. Disney blamed the shrunken quarterly profit on rising labor costs and pension obligations at Disney World and Disneyland, and on falling sales at Disney Vacation Club, its time-share arm.