Variety reports that Disney suffered a 31% 3rd quarter drop in profit, citing poor TV revenue and a slump in movie and theme park attendance since Sept. 11. Yesterday’s posting of $364 million in net income was down from last year’s $523 million. Total revenue took a 3% dive to $5.8 billion. In a recent conference call, Mouse House execs reportedly warned of further decline for the 4t quarter.
Disney stock has slipped 22% this year, hitting an annual low of $15.63 late last month.
Broadcast TV revenues have dipped 16% to $1.2 billion and advanced theme park bookings by international tourists is down by 10%. And despite the box office success of Lilo & Stitch, theatrical output was also effected by the terrorist attacks. Big Trouble, starring Tim Allen, and Bad Company with Anthony Hopkins and Chris Rock were held back from their original release dates for content reasons and went on to perform poorly.
The Hollywood Reporter notes that the numbers also reflect marketing and distribution costs for upcoming films, as well as poor international sales of direct-to-video fare such as Cinderella II: Dreams Come True.
Michael Eisner and other Disney toppers are confident that a turnaround is eminent, pointing to efforts to revitalize ABC Television and plans to expand Lilo & Stitch into a major franchise.