Profits Drop for Disney

The Walt Disney Co. ended its fiscal year with a 2 percent decrease in its box office draw, the only business segment of the media and entertainment conglomerate to see a drop in revenue. The company attributed the lower revenues to less sales of DVD titles, including “Pirates of the Caribbean: At World’s End” and “Ratatouille.” The Burbank-based company reported a net income of $4.4 billion, or $2.28 per diluted share, on revenues of $38 billion for the fiscal year ending Sept. 30. That is a 6 percent drop from the previous fiscal year when Disney brought in a net income of $4.7 billion, or $2.25 per diluted share, on revenues of $36 billion. For the fourth quarter, Disney reported a net income of $760 million, or $0.40 per diluted share, on revenues of $9.4 billion. For the same period in 2007, the company had a net income of $870 million, or $0.44 per diluted share, on revenues of $9 billion. The media networks, parks and resorts and consumer products business units all saw a gain in revenues for the year. The ABC Network was helped by higher advertising rates; domestic theme parks by increases visitor spending and park attendance; and consumer products by sales of by “Hannah Montana” and “High School Musical” merchandise.