Quarterly Profit down 13%...

[NJDVCMembers]

Profits are not down because they don't build new attractions..., they aren't building new attractions because the profits are down... as stockholders we appreciate everything Mr. Iger and his team are doing

LOS ANGELES (Reuters) - The Walt Disney Co on Thursday reported a 13 percent fall in quarterly net profit on higher costs at its U.S. theme parks and a flat performance at sports cable network ESPN.
The company's profit before one-time items fell short of Wall Street estimates, but revenue handily topped expectations.
The No. 2 U.S. entertainment company said the advertising climate had softened the performance of its cable and broadcast networks, and that its U.S. theme parks and resorts suffered under higher labor and fuel costs.
The adjusted results also were helped by the write-down of expenses related to income taxes and a $92 million loss from Lehman Brothers' bankruptcy.
Disney reported net earnings of $760 million, or 40 cents per share, compared with net earnings of $877 million, or 44 cents per share in last year's fourth quarter.
Excluding those items, Disney posted earnings of 43 per share.
Revenue rose to $9.45 billion, from $8.93 billion a year earlier.
Analysts, on average, expected the company to report net earnings of 50 cents per share, earnings excluding items of 49 cents per share and revenue of $9.33 billion for the quarter, according to Reuters Estimates.
Disney has seen its share price fall nearly 25 percent since its fiscal fourth quarter ended September 27, as the Dow Jones Industrial average declined about 20 percent.
Shares of Disney rose 3.1 percent to $23.52 after closing down 5.9 percent at $22.81 on Thursday.
(Reporting by Gina Keating; editing by Carol Bishopric)
Copyright 2008 Thomson Reuters

 

[WDWFigment]

as stockholders we appreciate everything Mr. Iger and his team are doing

Which is...?

This might explain the announcement of additional discounts for early 2009. While some of today's deals are alright, I think we'll hold off booking until later in the year, when things will likely look just as bleak, and discounts will hopefully be greater.

 

[patrok65]

this is why bob iger said tonight on fast money that for all domestic disney parks its pay for 4 nights and get three free or sumthing like that

 

[IlikeDW]

Profits are not down because they don't build new attractions..., they aren't building new attractions because the profits are down... as stockholders we appreciate everything Mr. Iger and his team are doing

looks like spending is up but expenses were up more:
This is from todays annual report:

Parks and Resorts
Parks and Resorts revenues for the year increased 8% to $11.5 billion and segment operating income increased 11% to $1.9 billion. For the quarter, revenues increased 7% to $3.0 billion and segment operating income decreased 4% to $412 million. Operating income growth for the year was driven by increases at Disneyland Resort Paris and Walt Disney World Resort. For the quarter, lower operating income was driven by a decrease in domestic operations, partially offset by an increase at Disneyland Resort Paris.
5
Domestic Operations
For the year, operating income growth at Walt Disney World Resort was primarily due to increased guest spending and theme park attendance, partially offset by higher operating costs. Increased guest spending was due to higher average ticket prices, increased food and beverage spending and higher average daily hotel room rates. Higher operating costs were due to labor cost inflation, new guest offerings and volume-related costs.
For the quarter, decreased results in the domestic operations reflected higher costs, which included labor and other cost inflation at Walt Disney World Resort and higher fuel and drydock maintenance costs at Disney Cruise Line, partially offset by higher guest spending at Walt Disney World Resort.
International Operations
Operating income growth at Disneyland Resort Paris for the year was primarily due to increased guest spending, higher theme park attendance and the favorable impact of currency translation, partially offset by higher operating costs. Increased guest spending was due to higher average daily hotel room rates and higher average ticket prices. Higher operating costs were driven by labor cost inflation and volume-related expenses.
For the quarter, operating income growth at Disneyland Resort Paris reflected higher guest spending and the favorable impact of currency translation, partially offset by lower attendance and occupied room nights and labor cost inflation.