Walt Disney Co. announced that the company's net income
declined 12% for the quarter ended June 30, according to
Lisa Bannon of the WALL STREET JOURNAL. Net income fell to
$415M from $473M in the same quarter last year, while
earnings per share declined 13% to $0.20 from $0.23.
Revenue rose to $5.25B from $5.19B in the comparable period
in '97. On a pro-forma basis, the company's earnings fell
2%, while revenue rose 5%, and Disney said that its creative
content division was "primarily to blame" for the lower
results. However, Disney's broadcasting division reported
increased profits, "driven by improvements in the ABC
television network and higher revenue" at ESPN. Broadcast
revenue rose 7% to $1.7B, while operating income was up 14%
to $384M from $337M. Bannon adds that Disney's earnings
report was "in line with the revised estimates of many
analysts" (WALL STREET JOURNAL, 7/22). However, in Orlando,
Tim Baker reports that Disney's results "came in below many
analysts' expectations" (ORLANDO SENTINEL, 7/22). Revenue
at ESPN was up "primarily because of higher advertising
sales and subscriber growth" (HOLLYWOOD REPORTER, 7/22).
