Theme-park executives at the Walt Disney Co. surprised even Wall Street this week with their ability to cut costs.
Disney’s global theme-park division managed to slice $150 million off its operating expenses during the first three months of this year, a 6 percent savings from the same period a year ago. Some of the savings came from steps such as reduced hours and performances at Walt Disney World and Disneyland in Anaheim, Calif., as well as lower costs for the merchandise, food and beverage sold within the parks.
The lower expenses helped soften the revenue hit that Disney’s parks had to absorb because of the deep discounts they are offering travelers during the global recession. And they were one reason the Disney Co. was able to report a $613 million profit during the its fiscal second quarter — down 46 percent from a year ago but better than most analysts had expected.
Disney’s stock surged on the results, rising nearly 12 percent Wednesday to close at $25.87 a share.
For the rest of Jason Garcia’s article…please go to the Orlando Sentinel
Thu, May 7, 2009
News