3rd Q Net Income Falls Sharply

jmarc63

jmarc63

New Member
Original Poster
Thursday, August 01, 2002


BURBANK, Calif. — Entertainment giant Walt Disney Co. (DIS) Thursday reported a sharp drop in its quarterly net income due to weaker results from its movie business and struggling ABC television network.


Burbank, California-based Disney reported net income of $364 million, or 18 cents per share, for its third fiscal quarter ended June 30, compared with $527 million, or 25 cents per share, a year earlier, adjusted for accounting changes.

Quarterly revenue fell 3 percent to $5.8 billion from the year-ago quarter.

Disney reported pro forma income of $343 million, or 17 cents a share, compared with $610 million, or 29 cents a share, a year earlier. That number was in line with the average Thomson First Call analysts' estimate of 17 cents per share, with estimates ranging from 12 cents to 19 cents. The average revenue forecast was $5.9 billion.

The earnings decline came as Disney embarked on a campaign to rebuild ratings at its struggling ABC network, which has fallen on hard times due to a lack of hit shows. The company's movie division also has failed to score a major non-animated hit in the first part of the important summer movie season.
 
jmarc63

jmarc63

New Member
Original Poster
Originally posted by jmarc63
Thursday, August 01, 2002


BURBANK, Calif. — Entertainment giant Walt Disney Co. (DIS) Thursday reported a sharp drop in its quarterly net income due to weaker results from its movie business and struggling ABC television network.


Burbank, California-based Disney reported net income of $364 million, or 18 cents per share, for its third fiscal quarter ended June 30, compared with $527 million, or 25 cents per share, a year earlier, adjusted for accounting changes.

Quarterly revenue fell 3 percent to $5.8 billion from the year-ago quarter.

Disney reported pro forma income of $343 million, or 17 cents a share, compared with $610 million, or 29 cents a share, a year earlier. That number was in line with the average Thomson First Call analysts' estimate of 17 cents per share, with estimates ranging from 12 cents to 19 cents. The average revenue forecast was $5.9 billion.

The earnings decline came as Disney embarked on a campaign to rebuild ratings at its struggling ABC network, which has fallen on hard times due to a lack of hit shows. The company's movie division also has failed to score a major non-animated hit in the first part of the important summer movie season.
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*****UPDATE DISNEY HALTS TRADING ON THE NYSE*****

Aparrently poor proforma numbers led to halting stock tradind
 
MickeyMoose15

MickeyMoose15

Account Suspended
The movies has not really helped matters.

Reign of Fire: $36 million w/ $60 million budget
Country Bears: $7 million w/ $20 million budget

Hopefully Signs and other films will help with the 4th Quarter.
 
T

TURKEY

New Member
More in Depth Information



Good Notes:

Studio Entertainment

Studio Entertainment revenues for the quarter increased 3% to $1.4 billion and segment operating income decreased 66% to $22 million.

Studio Entertainment results for the quarter were primarily driven by decreases in domestic theatrical motion picture distribution and international home video, partially offset by increased domestic television distribution revenues.

Despite the strong box office performance of "Lilo and Stitch," which was released late in the quarter and the continued success of "The Rookie," which was released during the second quarter of the current year, domestic theatrical motion picture results for the current quarter were impacted by weaker performing live-action titles, including "Bad Company," compared to the prior-year quarter, which included "Pearl Harbor" and "Spy Kids." Results for the quarter also reflected higher marketing and distribution costs for films not yet released. International home video reflected weaker performing direct-to-video titles in the current year, which included "Cinderella II: Dreams Come True" and "Hunchback of Notre Dame II" compared to "Lady and the Tramp II: Scamp's Adventure," "Little Mermaid II: Return to the Sea" and "The Tigger Movie" in the prior year. The improvement in domestic television distribution reflected the stronger performance of live-action titles and higher syndication revenues in the current quarter.




Corporate and Unallocated Shared Expenses

Corporate and unallocated shared expense decreased 19% to $76 million for the quarter. The decrease for the quarter reflected a gain on the sale of certain properties in the U.K., partially offset by costs for new financial and human resources information technology systems intended to improve productivity and reduce costs.




Bad Notes:

Parks and Resorts

Parks and Resorts revenues for the quarter decreased 5% to $1.8 billion and segment operating income decreased 17% to $467 million.

Parks and Resorts results for the quarter reflected lower theme park attendance and guest spending at both the Walt Disney World Resort and Disneyland Resort. At both the Walt Disney World Resort and Disneyland Resort, lower theme park attendance reflected decreases in domestic and international visitation resulting from the continued softness in the travel and tourism industry and in the economy as a whole, partially offset by strong local attendance due to the success of the Annual Passport Program and other local ticketing initiatives. Lower guest spending at both Walt Disney World and Disneyland was due primarily to a higher mix of local guests, which tend to spend less per visit, in combination with various other promotional programs.




Media Networks

Media Networks revenues for the quarter decreased 10% to $2.1 billion and segment operating income decreased 40% to $288 million. See Table A for further detail of Media Networks results.

Broadcasting results for the quarter reflected lower advertising revenues due to lower ratings, lower advertising rates and higher programming costs at the ABC television network and the impact of the weak advertising market at the Company's owned television stations. Ratings declines at the ABC television network also resulted in reduced advertising inventory available to be sold in the scatter market. Additionally, the prior-year quarter benefited from a gain from the sale of certain film and television properties at ABC Family. These decreases were partially offset by insurance proceeds related to the loss of a broadcast tower in the terrorist attack on the World Trade Center.

Disney's share of operating income from cable television activities, which consists of Disney's cable networks and cable equity investments, decreased 25% for the quarter to $234 million. See Table B for a detail of operating income from cable television activities.

Cable television results for the quarter reflected a decline in revenues and higher uncollectable accounts from Adelphia Communications Company in the United States and KirchMedia & Company in Germany, both of which have experienced financial difficulties; higher expenses at Lifetime Television, and the weak advertising market at both ESPN and the cable equity investments. Additionally, the quarter reflected the write-down of an investment in a Latin American cable operator, which the Company received in connection with the ABC acquisition. These decreases were partially offset by higher cable network affiliate revenues driven by contractual rate adjustments and subscriber growth.

 
T

TURKEY

New Member
Re: Re: 3rd Q Net Income Falls Sharply

Originally posted by jmarc63




*****UPDATE DISNEY HALTS TRADING ON THE NYSE*****

Aparrently poor proforma numbers led to halting stock tradind
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Where are you getting this from?
 
T

TURKEY

New Member
Originally posted by pheneix
Brent, why did you put Studio Entertainment under "good notes"? Their performance is far, far worse than the parks.
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Revenues are up. If they didn't make have such terrible movies out, income would have been better.
 
T

TURKEY

New Member
More news from above link:

Current Outlook

The down turn in the international and domestic travel and tourism industry as well as the economy as a whole is impacting the Company's businesses and, accordingly, attendance and occupancy at its domestic parks and resorts continues to be negatively impacted. Additionally, the Company is experiencing softness, thus far in the fourth quarter, in attendance and advanced reservation trends at domestic and international theme parks. Given these trends, the Company currently expects that earnings and earnings per share for the fourth quarter will likely be somewhat lower than prior-year pro forma amounts.



NEW YORK -(Dow Jones)- Walt Disney Co. (DIS, news, msgs) Chief Financial Officer Thomas Staggs said advance fourth-quarter reservations for its domestic theme parks are down about 10% from last year's levels.

"We have less visibility than usual on park attendance so we are striking a more cautious note," Staggs said Thursday during a conference call to discuss earnings. "That doesn't mean we won't see a great fall."


http://www.quicken.com/investments/...s/dj/20020801/ON20020801000933.htm&symbol=DIS
 
T

TURKEY

New Member
Re: Re: Re: Re: 3rd Q Net Income Falls Sharply

Originally posted by jmarc63



CNBC at 3pm central
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Well, the NYSE closes at 3 pm central.

I'm not 100% sure, but I'm thinking that once the NYSE closes all stocks stop trading. After hour trading is through other markets and not on the NYSE.

Also, from hours of watching CNBC and CNNFN, I think that all stocks halt trading when having earnings announcements and such.
 
jmarc63

jmarc63

New Member
Original Poster
Re: Re: Re: Re: Re: 3rd Q Net Income Falls Sharply

Originally posted by turkey leg boy


Well, the NYSE closes at 3 pm central.

I'm not 100% sure, but I'm thinking that once the NYSE closes all stocks stop trading. After hour trading is through other markets and not on the NYSE.

Also, from hours of watching CNBC and CNNFN, I think that all stocks halt trading when having earnings announcements and such.
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Thats when I first heard about it i wasn't able to find details of why they did this before I had to go to work
 

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