The Walt Disney Co. said Tuesday its fiscal first quarter earnings fell 32 percent on lower revenue from its home video business, TV networks and theme parks.
After the market closed, the Burbank entertainment giant reported net income of $845 million (45 cents per share) for the quarter ended Dec. 27, compared with net income of $1.25 billion (63 cents) a year ago. Revenue fell 8 percent to $9.60 billion.
Excluding a one-time gain from selling its stake in two Latin American pay TV services, Disney's earnings were 41 cents a share. That disappointed analysts surveyed by Thomson Reuters, whose average expectations for earnings was 52 cents per share on revenue of $10.1 billion.
One bright spot was the company's video game and online unit, which saw 13 percent revenue growth to $313 million.
Cable network revenue, which includes Disney Channel and ESPN, rose 2 percent to $2.45 billion, but ABC broadcast revenue was down 14 percent to $1.45 billion.
Studio revenue dropped 26 percent to $1.95 billion. The company had stronger sales for its 2007 holiday releases, which included "Pirates of the Caribbean: At World's End" and "Ratatouille," compared with its 2008 offerings "Wall-E" and "The Chronicles of Narnia: Prince Caspian." Parks and resorts revenue dropped 4 percent to $2.67 billion as fewer people visited the company's theme parks and hotels and stayed for shorter periods.
"We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn," Chief Executive Robert Iger said in a statement.
Disney shares were down 9 percent in after-hours trading after closing up 42 cents, or 2 percent, to $20.62 on the New York Stock Exchange.
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