Disney’s Earnings Declined Significantly This Fiscal Year

November 12th, 2010 - 8:37 pm ICT by GD  

By Meena Kar
disney1Nov 12, (THAINDIAN NEWS) Disney is going through a hard time right now as it’s income and market share had a sudden decline as per their earning report, which has been released. However, despite the loss, the company is hopeful about recovering from the loss very soon, by the next year.

According to the reports, the share fell by 5% in the final half hour, before it ended at 2.9% loss. The actual earning of the company also witnessed a sudden fall as it came down to $835 million from $895 million. The revenues also dropped by 1% in the quarter while 5% for the entire year. Disney’s media networks group, which includes some of the leading channels like ABC and ESPN, showed an 18% decline in the operating income. The reports says that in the fourth quarter, the operating income of Disney’s cable networks fell 28% to $1.1 billion, with a 6% drop in its revenue. ESPN witnessed a revenue of only $170 million, as compared to its revenue last year, which was $525 million. It has been calculated that there has been a profit drop of 18% for this media company for the entire year.

However, Walt Disney’s President and CEO Robert A. Iger has confirmed that in the fourth quarter, the revenues grew significantly after its programming writeoff at one of its equity networks. He said that the operating income at Cable Networks increased $213 million to USD 4.5 billion in the latter part of the year. International Disney Channels on the other hand had a partially offset by a decrease in cable equity income. He also believes that with the acquisition of Marvel, the company can recover a lot more in the coming years.

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