Walt Disney’s Profits Fall
July 30, 2009 by Mark Ellis
Filed under Business
Walt Disney Co. has not managed to avoid being ravaged by the recession, as the global media giant had posted a third-quarter profit drop of 26 percent. Thanks to the recession, less and less people are able to visit Disney’s massively popular theme parks and fewer advertisers are able to spend money.
Due to Disney’s significant drop in profits, the company’s film studio has posted a loss for the third quarter, while the main company’s net income has fallen to $954 million from $1.28 billion a year earlier. Sales also declined 7 percent to $8.6 billion, significantly missing the $8.81 billion mark that was formed by an average of analysts’ estimates.
The most pressing factors in Disney’s tumbling fortunes are sliding ad sales, steep theme-park discounts to attract visitors, and stumbling DVD sales. Many investors look to advertising profits to decide whether or not to invest in a media company, and Disney’s falling ability to sell advertising space has seen Disney’s shares fall $25.79 after its newest report.
Image: Flickr
