Disney’s Q4 stunk. Revenues increased to $9.45 billion, from $8.93 billion a year earlier, but net profit for Q4 fell 13% due to higher costs at its theme parks and flat performance at ESPN.
More from Reuters: 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 labour 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.
— EPS for the year was $2.28, compared to $2.25 in the prior year. EPS for the prior and current year included net benefits of $0.33 and $0.01, respectively, from certain items which are detailed below
— EPS excluding these items was $2.27, up 18% from $1.92 in the prior year
— EPS for the quarter was $0.40 versus $0.44 in the prior-year quarter. Excluding the items discussed below, EPS was $0.43 for the quarter compared to $0.42 in the prior-year quarter
EPS for the prior year included gains on the sales of our interests in E! Entertainment and Us Weekly, favourable adjustments related to prior-year income tax matters, income from the discontinued operations of the ABC Radio business, and an equity-based compensation plan modification charge. Collectively, these items resulted in a net benefit of $0.33. EPS for the current year included an accounting gain related to the acquisition of the Disney Stores in North America, a gain on the sale of movies.com, the favourable resolution of certain prior-year income tax matters, and a fourth quarter bad debt charge for a receivable from Lehman Brothers. Collectively, these items resulted in a net benefit of $0.01 per share.