Walt Disney Co. Sees Profits Plummet

Somewhere, Mickey Mouse has a frown. Compared to last year at this time, the Walt Disney Company reported that their profits are way down. The two areas being blamed are the movie division and the theme park division.

Mickey Mouse Sad (Image: Flickr)

Last year, the Walt Disney Company had a quarter profit of more than $1.1 billion. This year, their quarter profit slipped to less than $615 million. Revenue down was also down more than 5%.

Disney has been able to keep their theme parks at about the same capacity as last year, however those visitors aren’t spending as much money. Add that to the fact that Disney has had to cut prices to attract visitors to their theme parks and it’s not surprising to learn that their theme parks profit was cut in half.

The movie studio division of Disney pulled in only 80% of the profits that they did at this point last year. While Disney says the national economy played a part, a lot of the blame went on a lacking string of Disney movies.

Despite all the doom and gloom, Disney’s stock actually rose slightly on the day. It began at $22.86 and Disney stock rose to $23.15 by the end of the day.