Walt Disney quarterly profit falls 7 pc to $835 mn
Bogged down by one-time charges, Entertainment conglomerate Walt Disney Company saw its fourth-quarter profit slide nearly seven per cent to USD 835 million.business Updated: Nov 12, 2010 13:02 IST
Bogged down by one-time charges, Entertainment conglomerate Walt Disney Company saw its fourth-quarter profit slide nearly seven per cent to USD 835 million.
Walt Disney eked out the profit on revenues of USD 9.74 billion for the fourth quarter ended October 2. In the year-ago period, the company had a profit of USD 895 million.
"The current quarter (2010 fourth quarter) included restructuring and impairment charges of USD 58 million," it said in a statement on Thursday.
Walt Disney incurred restructuring expenses, primarily related to severance costs worth USD 55 million and impairment charges to the tune of USD 3 million in the fourth quarter.
Among the business segments, revenues from media networks declined by seven per cent to USD 4.41 billion, while that from parks and resorts declined by 1 per cent to USD 2.81 billion.
However, Walt Disney's President and CEO Robert A Iger said the fourth quarter earnings grew solidly after factoring in a programming writeoff at one of its equity networks, the timing of ESPN revenue recognition and the effect of one fewer week of operations this year than last.
"Operating income at Cable Networks increased USD 213 million to USD 4.5 billion for the year due to growth at ESPN and the international Disney Channels, partially offset by a decrease in cable equity income," the statement added.