It is being reported that the Walt Disney Company had flat Quarter 1 profits this year.
One reason for this is that there are less people traveling to the Disney theme parks and the people are are visiting the parks expect discounted tickets, food and gifts while they are there.
In addition, while ESPN and the Disney Channel benefited from higher ad revenue in Quarter 1, the ABC broadcast network had fewer viewers and therefore lower advertising rates.
At a recent press conference, Disney President Bob Iger said: “At this point we have limited visibility regarding the economy and its impact on our businesses. Thus we will continue to focus on controlling costs while creating great content and experiences and building our brands.”
Bob also said the the goal at Walt Disney’s theme parks is to “slowly wean our guests off discounting. … We don’t believe that we’re dealing with an economy right now that enables us to shut off the discounting immediately.”
The Walt Disney Company earned $844 in the fiscal first quarter, which is flat compared with a year earlier. Theme park revenue was also flat, while movie studio revenue was down.