Disney dips in Q1

Disney's president says the firm will be reducing costs after first quarter results saw group turnover and profit both fall.
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The entertainment giant reported a much lower-than-expected quarterly profit as the global downturn hurt TV advertising, DVD sales and theme parks.

Robert Iger, Disney's president and chief executive officer, told analysts the company was still looking at "significant" overall cost reductions, including "reducing costs of distribution, production (and) marketing.

"It's an across-the-board process that does not just involve eliminating jobs," Iger said.

First-quarter net profit fell 32 per cent to $845 million from $1.25 billion in last year's first quarter.

Revenue fell eight per cent to $9.6 billion from $10.45 billion a year earlier.

The Consumer Products division also saw its operating profit fall eight per cent to $265 million, but revenue rose 18 percent to $773 million for the quarter.

DVD sales for big films Wall-E and Prince Caspian did not match last year's titles, bringing the unit's operating profit down 64 percent to $187 million, and revenue down 26 percent to $1.95 billion in the quarter.

Operating income from theme parks fell 24 per cent to $382 million in the quarter. Revenue fell four per cent to $2.67 billion.

At media networks, operating profit fell 29 per cent to $655 million and revenue slid five per cent to $3.9 billion on lower ratings for ABC programing and weaker ad sales at ESPN.

The company said last month that it was cutting hundreds of jobs at its theme parks, ABC Media Group and ESPN, and consolidating ABC's production and network businesses.

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