Walt Disney has had one of their toughest starts to the year. The company has revealed that in the first three months, between january and March 2011, they collectively ran at a loss of 115 million dollars. This has shown that their previous deficit of 55 million dollars has substantially increased. This is despite a revnue increase, up to $159 million.
Disney have said one of the main reasons attributing to this shortfall of cash is a $34 million accounting charge which arose when they purchased Playdom. It was last July when Playdom was bought for a massive $563 million.
Interactive Media further suffered, during the six months leading into April the company lost $128 million which is practically double the previous debt of $65 million in the same period one year earlier. Although revenue was up to $508 million from $376 million so it's not all bad news.
It is also not like Disney hasn't tried to fight off the debt closing down one of their hubs in Vancouver and hacking 350 jobs inside their Interactive Media Group. Black Rock was next on the chopping blocks as the layoffs continued.
Overall for all you math geeks, the Walt Disney Company saw $942 million in net income on $9.08 billion of revenue for the January-March quarter.
Six-month net income was $2.24 billion on revenue of $19.79 billion for the half-year.