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Current Performance
Based on Hoovers Online The Walt Disney Company is the #2 media conglomerate in the World. They train behind the ever large/immense/massive/freakish AOL Time Warner.
The Quarter ending 12/31/02 left The Walt Disney Company with a rise in revenues of 6% to $7.47 billion. Net income fell 42% to $256 million. Note: The Walt Disney Company ends its fiscal year in the Quarter ending in September. These statistics are the start of what looks like a strong year.
In the current marketplace Disney operates in the following four segments: 1) Media Networks; 2) Parks and Resorts; 3) Studio Entertainment; and 4) Consumer Products.
We currently see a relatively high P/E ratio and a low stock price (historically).
The consumer division is currently amidst a court filing with the �owners� of the rights to Winnie the Pooh. This may cost billions in settlement and hurt future growth.
In the Studio Division there were some hard hits. The amount of money invested in Treasure Planet was enormous and the movie flopped. This cost the company to lose money in both the Studio and Theme Parks (cut backs in seasonal hours, general cuts�) However it will be interesting to see how this turns out in the near future � for Treasure Planet had received an Oscar Nomination! This would definitely help this situation. Also, Lilo and Stitch is up for nomination.
Also due to the situation in the Middle East we are seeing some decline in travel however we see an increase in the Media Coverage. This spells money for media companies.