Disney earnings decline after leak of the fourth-quarter results

November 12th, 2010 - 8:14 pm ICT by Aishwarya Bhatt  

New York, Nov 12 (THAINDIAN NEWS) The leak of the fourth-quarter performance of Walt Disney sent the company’s stock tumbling. The company announced on Thursday that it will initiate investigation into how the information was leaked to the media. The company’s fourth-quarter figures showed a decline in the company’s profit.

The leak of the company’s financial figures has threatened to leak before. Two employees of the company are currently standing trial for trying to sell the company’s financial information earlier on. They have both pleaded guilty to the charge two months back.

The leak sent the shares of Walt Disney tumbling on Thursday. The leak forced the company to release the official figures 16 minutes earlier than it should have been and the company’s shares shed some 4.9 percent of its share before recovering from some value later on. About 37.7 million shares were traded by the end of Thursday and that figure is more than three times the average trading volume.

During a conference call, the Vice President of Walt Disney said that, “We are aware that information regarding our fourth-quarter earnings became available ahead of its formal release and we are investigating how this occurred”.

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