LOS ANGELES (Reuters) – The global economic downturn hit Walt Disney Co's quarterly results harder and faster than Wall Street expected, with the company on Thursday reporting a sharp decline in hotel bookings and softness in advertising revenue at its networks.
Disney's shares slid 9 percent in extended trade but recovered a bit after executives announced plans to discount stays at Walt Disney World to stimulate bookings in the first half of 2009.
"Consumer confidence is the lowest we've seen in over three decades, and even the best product out there is feeling the effect," Disney Chief Executive Robert Iger told analysts on a conference call.
To add to Disney's travails, the new tax hike plan proposed by the Governator will extend the sales and use tax to theme park tickets, items which weren't previously taxed. If enacted, every admission to the Disney Resort in Anaheim will cost parkgoers an additional 9.25%, even without a ticket cost increase.
The Mrs. and I will go help them out Friday night and buy a little dinner at the park.
Posts
No comments:
Post a Comment