Quarterly profits are down at Walt Disney, with the entertainment conglomerate's media and film arms taking the biggest hits.

But there was better news at its troubled theme park division, which beat expectations with a growth in visitor numbers.

Disney refused to make any financial predictions for the next quarter.

But it is standing by its full-year projections for 2003 and 2004 and its shares rose in after-hours trading on Thursday.

Better advertising

Disney reported a net profit of $256m, or 13 cents a share, in the three months to the end of December

That compares with a profit of $438m or 21 cents per share in the same period last year.

Chief executive Michael Eisner said the company would stick to its target of a 25% to 35% growth in earnings per share this year, with similar growth in 2004.

The results come a day after Disney rival AOL Time Warner reported record corporate losses of nearly $100bn for 2002, after a loss of $44.9bn for the final three months of the year.

Higher spending

Disney's broadcasting arm, which includes US network ABC, saw an improved performance thanks to better advertising and lower programme costs.

But its cable TV results were hit by higher sports rights costs.

Theme park revenues rose 8% to $1.5bn and operating income rose 20% to $225m.

The improvement was down to higher spending and attendance at Walt Disney World Resort in Florida and the Disneyland in California.

Box office flop

But much of the increased attendance at Walt Disney World reflected cancellations, deferrals and reduced travel in the same quarter last year, the company said.

Disney's film studio revenues rose 7% to $1.9bn while operating income fell 7% to $138m.

Strong ticket sales of films such as "Sweet Home Alabama" and "The Santa Clause 2" could not overcome the box office flop, "Treasure Planet".

Consumer product revenues fell 6% to $787m.