Disney to unveil quarterly earnings
Does the Magic Kingdom still have that sparkle? Investors find out later today whether the ailing economy has put a damper on Walt Disney's bottom line. The media giant will unveil quarterly earnings. Janet Babin reports.
Captain Hook grins above the Hong Kong Disneyland logo (Mike Clarke/AFP/Getty Images)
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Renita Jablonski: Investors find out later today whether the ailing economy has put a damper on Walt Disney's bottom line. Marketplace's Janet Babin reports from North Carolina Public Radio
Janet Babin: With gas close to four bucks a gallon, a lot of summer vacations will probably be spent on the couch. That wouldn't be too bad for Disney -- the biggest part of its revenue comes from ads on its TV networks. Its Achilles heel, though, may be the Magic Kingdom. Disney theme parks and cruise lines have suffered in prior recessions. But analyst Nicole Black at Wachovia expects the company will tough it out and even see profits increase.
Nicole Black: They're very well diversified across things like movies, cable channels, network channels, resorts. They have a very large consumer products business.
One of Disney's best known brands had a scare last week. Hannah Montana's 15-year-old star turned up in a racy magazine spread. Dade Hayes is Variety's New York Bureau Chief. He says Disney's contained the damage.
Dade Hayes: To me it doesn't seem like a Lindsey Lohan meltdown.
Too bad Disney hasn't been able to contain high gas prices and consumer confidence.
I'm Janet Babin for Marketplace.
