PROFITS at Walt Disney have dropped 42% to £154.7 million in
the quarter ended December 2002.

This compares to net income of £264.7 million in the same quarter
in 2001.

Attendance and spending at Disney’s US theme parks rose last
year and contributed to a 20% jump in operating income to £136 million.

Chairman and chief executive officer Michael Eisner said: “Our
most recent quarter’s results, especially the strength of the Disney parks in
the face of continued economic softness, are further evidence of the soundness
of our strategic plan.”