Revenues for Disney's media networks division, including the ABC TV network, saw revenues for its first quarter, ending December 31, fall by 3% to £2.1bn, down from £2.2bn for the same period in 2000.
Operating income for the division fell from £419m to £174m -- a fall of 58%, with the broadcasting division moving to a loss of £54m. Disney said this reflected the "soft advertising market, higher primetime programming costs and lower ratings at the ABC television network".
Despite beating forecasts, Disney saw its share price fall by 1.6% yesterday, after posting a 55% drop in earnings for the first quarter.
The company's shares, listed on the New York Stock Exchange, fell by 34 cents to trade at $21.06 when the market closed, a fall of 1.6%. In after-hours trading, however, the price climbed up to over $22. The company reported that pro-forma net income was down to £211m, a 55% drop, on revenues of £5bn.
Michael Eisner, chairman and CEO of Disney, said: "This quarter's results are an indication of how we are managing through challenging times while building for the future."
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