Disney profits plunge 46 percent

May 6th, 2009 - 6:29 am ICT by IANS  

Los Angeles, May 6 (DPA) Entertainment conglomerate Disney saw second quarter profits plunge by 46 percent, the company said Tuesday.
Citing restructuring charges, declining DVD sales and a drop in advertising, Disney said it earned $613 million in the quarter compared to $1.13 billion a year ago.

Revenue fell 7 percent to $8.1 billion from $8.71 billion in the year ago quarter. Disney’s parks and resorts saw a 12 percent drop in revenue, while the studio entertainment division saw sales down 21 percent.

“We had a difficult second quarter due to the weak economy and other factors,” Disney President and Chief Executive Robert Iger said in a statement. “At the same time, we remain focused on our core business strategy and believe our creativity, brands and businesses will serve us well as the economy recovers.”

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