Walt Disney Inc., the world’s biggest media company, said third-quarter profit fell 26 percent as the recession cut advertising and theme-park sales. The film studio registered a loss , Bloomberg r eports.
"We do see signs of economic stabilization," Disney Chief Executive Robert Iger told analysts. "But the pace and strength of recovery remain uncertain and we are managing accordingly."
Walt Disney Studios was the most dramatically affected, posting an operating loss of $12 million for the quarter ended June 27 -- its first such loss since 2005, Los Angeles Times reports.
Hit hardest was the company's movie studio, which swung to an operating loss for the first time since 2005. Despite the box-office success of "Up," the latest release from Disney's Pixar unit, company executives said their home-entertainment division was hurt by a weak lineup, compared with a year earlier, when its hits "Enchanted" and "National Treasure: Book of Secrets" were new to the DVD and video-on-demand markets , Wall Street Journal reports.
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