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Disney drops $548 million

Disney exceeded analysts' expectations for its second quarter, reporting a $548 million loss, due to accounting changes and the shutdown of Disney's portal and 70 Disney stores.

For the quarter ended March 31, Disney's net loss of $548 million, compared with net income of $161 million for the same period one year earlier. It recorded revenue of $6.05 billion for the quarter - a 4% drop from $6.3 billion a year earlier.

The company is in the midst of cutbacks including the planned elimination of 4,000 jobs and a major restructuring of its troubled Web operations. Disney President Robert Iger said these and other cutbacks are helping Disney weather the impact of the current economic downturn. But ABC took a hit in reduced ad sales and lower ratings during the quarter. Operating income for its broadcast group fell 9% to $489 million during the quarter, with revenue dropping 8% to $2.21 billion.
- Richard Tedesco