1Q09 revenue down 8% and net income down 39%. Huge profit reduction mainly on studio entertainment sector (mainly due to unbeatable success of the High School Musical 2 in 2007). If we take away this impact, and non-recurring items like $40M fuel hedge cost and $60M bad debt write off. The adjusted result was not looking too bad.
As Warren Buffet said, "when you think about 20th FOX, or Universal Network, nothing will come to u mind, but with Disney, everyone will think of something good."
If any company or any product which will give u a memory about happy, joy, satisfy whenever u think about it. Then you may think about whether you should invest in such company.
In short run, the revenue may go down due to weak economy and weak advertisement sales.
In long run, it also face the challenge such as tradition broadcasting vs online, buying DVD vs watch on youtube/download issues.
Future success will rely on whether Disney can turn her business into the digital world instead of keep fighting on copy right or illegal issues.
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