MISERY MOUSE CLUB; DISNEY ANNOUNCES SLUMPING PROFITS.Byline: Dave McNary Daily News Staff Writer The long slump that had dragged down shares of The Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co. resumed Wednesday as the entertainment giant reported worse-than-expected quarterly profits, particularly at ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. . Shares of Disney fell 4.6 percent by sliding $1.625 to $32.9375, their lowest level since Jan. 7 and 22 percent below the all-time high of $42.375 last May. Wednesday's decline erased e·rase tr.v. e·rased, e·ras·ing, e·ras·es 1. a. To remove (something written, for example) by rubbing, wiping, or scraping. b. much of a rally two weeks ago that was sparked by interest over its Internet portal site Noun 1. portal site - a site that the owner positions as an entrance to other sites on the internet; "a portal typically has search engines and free email and chat rooms etc. launch. Disney's earnings excluding one-time events declined 38 percent to $470 million, or 23 cents a share, for its first quarter ended Dec. 31, or a penny short of the consensus estimate. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. fell 8 percent to $1.38 billion despite a 3.9 percent gain in revenues to $6.59 billion. Shares, which dipped under $23 last fall, could fall further in upcoming sessions. ``We're probably going to see estimates for this year's earnings start to come down slightly in the next few weeks,'' said Linda Bannister, an analyst with Edward Jones Edward, Eddie, or Ed Jones is the name of: Edward Jones:
Broadcasting operating income plunged 48 percent to $265 million although revenues rose 7 percent to $2.21 billion. Performance in that division has been sluggish since Disney bought Capital Cities/ABC in 1996 as viewers have turned off the Big Four networks and turned on dozens of cable alternatives. Higher sports program costs, including $1.2 billion for this season's pro football rights in the first of an eight-season deal, drove the decline. Disney also cited lower ratings at ABC News
ABC News is a division of American television and radio network ABC, owned by The Walt Disney Company. Its current president is David Westin. and carry-over costs stemming from the Capital Cities/ABC merger. ``Disney needs a new formula for running ABC,'' said Barry Hyman, an analyst with Ehrenkrantz King Nussbaum. ``I don't have any advice for them because none of the networks have yet figured it out. The underlying assumptions for running a network no longer work, really.'' Creative content posted a 39 percent decline to $430 million in operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before due to sluggish results in merchandising and home video, where the year-earlier period saw stronger offerings. Declines were partially offset by the ``Simba's Pride'' video and from solid box office for ``The Waterboy,'' ``A Bug's Life'' and ``Enemy of the State,'' with over $465 million in combined domestic gross. ``Our creative content and broadcasting operating results continue to reflect the challenges we began facing in 1998, including rising programming and production costs,'' Chairman Michael Eisner Michael Dammann Eisner (born March 7, 1942) was CEO of The Walt Disney Company from September 22, 1984 to September 30, 2005. Early life Michael Eisner was born to a wealthy family in Mt. Kisco, New York, and raised on Park Avenue in Manhattan. said in a statement. Laguna Research Partners consultant Kevin Skislock said lower sales at Disney Stores, particularly domestically, could signal a further slowdown in the expansion of the 695-outlet chain. ``It's worrisome because it may mean the brand is so overexposed o·ver·ex·pose tr.v. o·ver·ex·posed, o·ver·ex·pos·ing, o·ver·ex·pos·es 1. To expose too long or too much: Don't overexpose the children to television. 2. that it's not special anymore,'' he added. Hyman said creative content should post improved results in coming quarters due to a solid lineup of video and theatrical titles. ``I'm not disturbed by the creative content results and I don't see it as a major problem,'' he added. Theme parks and resorts continued to post strong results, up 17 percent to $335 million in operating earnings. Disneyland and the four-park Walt Disney World Noun 1. Walt Disney World - a large amusement park established in 1971 to the southwest of Orlando Orlando - a city in central Florida; site of Walt Disney World complex in Florida saw record attendance. ``Theme parks are still the shining light,'' Hyman said, forecasting this summer's launch of a second cruise ship will improve results. Skislock said it makes sense for Disney to emphasize its theme-park business. ``It's what they do better than anyone else,'' he added. ``The challenge is they've diluted their uniqueness by becoming so large.'' Results included a one-time $345 million gain from its acquisition of a 43 percent share of Internet search service Infoseek, which gave Disney earning of $622 million, or 30 cents a share, for the quarter. |
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