Walt Disney Co on Thursday reported a lower fourth-quarter profit, as movie-studio losses canceled out strong broadcast and theme park results.
The Burbank-based entertainment giant reported fourth-quarter net income of $379 million (19 cents per share) for the three months ended Oct. 1, compared with $516 million (25 cents) for the like period a year earlier. Revenue rose 3 percent to $7.5 billion.
Excluding an accounting charge related to the decrease in value of FCC licenses of its owned television stations and the expense for stock options, the company reported fourth-quarter earnings of 23 cents per share.
Analysts had expected fourth-quarter earnings of 18 cents per share on revenue of $7.88 billion.
Disney's studio entertainment revenues decreased 20 percent to $1.5 billion in the fourth quarter as its worldwide home video sales declined. The results were partially offset by higher domestic ticket sales for movies such as Disney/Pixar's "The Incredibles" and "National Treasure," and lower film cost write-downs. Sales of Disney's consumer products also dipped, slipping 16 percent to $519 million.
Revenues for Disney's parks and resorts rose 9 percent to $2.4 billion due to improved performance at Walt Disney World and Disneyland Resorts, but profit was driven down by increased opening costs at Hong Kong Disneyland. Revenues of Disney's media networks division, which includes the ABC network and ESPN cable channel, jumped 16 percent to $3.4 billion.
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