The Walt Disney Company has reported income for the quarter to 31 March showing a 12 per cent drop to $229m, on revenues up slightly at $6.3bn.

The Parks and Resorts sector saw a fall in income - down 45 per cent - with the quarter's $155m comparing badly with $280m at the same time last year. This figure reflects higher costs at both Walt Disney World and the Disneyland Resort but more especially a drop in theme park attendance and hotel occupancy.

The company says these were affected by the disruption to travel and tourism caused by worries about terrorist attacks, the war in Iraq and global economics generally.Disney chair and chief executive officer, Michael Eisner, said: The military conflict in Iraq and fear of terrorism have clearly had a near-term effect on a number of our businesses.

He continued: As long as we continue to provide great entertainment and manage our businesses well, Disney will prosper over the long term. Details: www.disney.go.com