The Wall Street Journal is reporting that the Walt Disney Company has announced that their corporate profit has dropped by 46% in the last quarter.
According to Disney President and CEO Robert Iger, the drop is due to a decline in hotel occupancy (89% in Florida (same as last year) and 69% in Anaheim (down from 83% a year earlier) not to mention a drop in per-room spending, revenue from the parks (which has fallen from $339 million a year ago to $171 million currently), but the biggest loss has been from Disney’s movie studios where the operating income has fallen 97% to $13 million.
But as Michael in The Tiki Room says ‘Every cloud has a silver lining’ and according to Bob Iger, the drop appears to be stabilizing thanks to heavy discounting, promotions, and advertising. Disney is also reporting that its Cable TV channels ESPN and The Disney Channel has increased revenue by 5% since last year.
While Bob Iger sounds optimistic, he adds ‘ It is too early to make predictions about the timing and the pace of the recovery’.
Disney stock rose 13% today based upon Disneys quarterly report.
For a full version of this story, please go to Disney Profit Falls Sharply But Clouds Are Parting - WSJ.com