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Disney takes charges, posts lower net income

Net income at media conglomerate The Walt Disney Co. dropped 26 percent in the fourth quarter after several charges, including the expensing of stock options.
/ Source: The Associated Press

Net income at media conglomerate The Walt Disney Co. dropped 26 percent in the fourth quarter after several charges, including the expensing of stock options.

Disney said Thursday that profit increased at its media networks division, which includes the ABC network and ESPN cable channel, as well as at its theme parks. But profit fell at Disney’s studio, which sold fewer DVDs worldwide, and its consumer products division.

The company released its earnings after the close of stock markets. Shares of Disney, which had risen 14 cents to $25.99 on the New York Stock Exchange, fell 64 cents in after-hours trading.

The Burbank, Calif.-based company reported net income of $379 million in the quarter ended Oct. 1, or 19 cents per share, compared to $516 million, or 25 cents per share in the same period last year.

The results beat estimates from analysts surveyed by Thomson Financial, who had expected earnings of 18 cents per share.

Revenue rose slightly to $7.7 billion from $7.5 billion in the same period last year.

The company took an accounting charge related to the decrease in value of FCC licenses of its owned television stations.

Disney also began expensing stock options in the quarter. Without the accounting charge and the expense for stock options, Disney said its earnings for the quarter would have been 23 cents per share.