Mickey Mouse is having a tough time keeping investors happy and Walt Disney chairman Mr Michael Eisner seems to have his work cut out to boost its prospects for the millennium.
Disney shares have come under pressure after Mr Eisner said the company's depressed earnings streak would continue into 2000.
Disney, which saw its net earnings drop to $1.3 billion (€1.25 billion) in 1999 from $1.85 billion in 1998 is the second-largest entertainment group after Time Warner. It owns ABC Entertainment Television, Buena Vista Motion Pictures, Disney World, Disneyland, ESPN and other publishing and sports franchise businesses.
Disney's revenue and earnings have slumped everywhere, except for its theme parks and resorts. In its media networks division, Disney has had to grapple with lower prime-time ratings and higher programming costs.
In the studio entertainment business, Disney reported a loss of $94 million for the quarter, despite the launch of successful movies such as The Sixth Sense and Tarzan. Home video profit margins were down too. Even in the popular merchandise licensing business, Disney was hit by an 8 per cent drop in revenue and a steeper 38 per cent fall in operating income during the quarter. Analysts say the market for Disney's toys and other merchandise has been shrinking.
