Walt Disney Q1 profits hit by downturn, drop 32%

With the global downturn impacting several of its businesses, diversified media and entertainment firm Walt Disney Company has reported a fall of 32 per cent in net income at $845 million in the quarter ended December 2008.

The company had a net income of $1.25 billion in the December quarter of the previous fiscal, Walt Disney said in a statement.

Revenues of the firm had declined to $9.6 billion for the first quarter of fiscal 2008-09 (October-December) from $10.45 billion in the year-ago period.

The company's Media Network business witnessed a 29 per cent drop in operating income to $655 million and revenues declined five per cent to $3.9 billion, due to weaker advertising sales at ESPN and lower DVD sales at the Disney Channels.

Commenting on the results Disney President and Chief Executive Officer Robert A Iger said: "We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn."

"We are forcefully confronting current circumstance while investing in the great creativity, brands and assets that are Disneys strengths and keys to its long-term success," Iger said.