Revenue dips at Disney theme parks unit

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BURBANK, Calif. -- Walt Disney Co.'s net income increased 137% to $415 million for its fiscal-fourth quarter, which ended Sept. 30, but gains in its studio entertainment and media networks businesses were partially offset by declines in parks and resorts and consumer products.

Revenue for the year increased 7%, to $27 billion from $25.3 billion. Revenue for the fourth quarter increased 5%, from $6.7 billion to $7 billion. Net income increased 137% for the quarter, from $175 million to $415 million, which helped push the yearly net income to a 3% increase from $1.23 billion to $1.27 billion.

Meanwhile, revenue from Disney's parks and resorts unit decreased 1% to $1.6 billion for the quarter; for the year, the unit's revenue was off 1% to $6.4 billion.

Operating income for the unit, which takes in Disney's theme parks and hotels, decreased 4% to $225 million for the quarter and fell 18% to $957 million for the year.

The declines for the Disney unit reflected lower hotel occupancy and theme park attendance as well as higher costs for marketing, refurbishments, information systems, insurance and employee benefits. Higher guest spending softened the decline, Disney said.

Both the quarterly and annual results felt the impact from the elimination of royalties and management fees from Euro Disney, beginning in the second quarter.

Walt Disney World, however, experienced higher hotel occupancy and theme park attendance, although promotional price cuts caused a reduction in guest spending levels, Disney said.

To contact reporter David Cogswell, send e-mail to [email protected].

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