World's biggest media company, the Walt Disney Co. reported on Thursday its fiscal third-quarter profit fell 26% due to recession that trimmed down its DVD sales and advertising.

Disney's net income dropped to $954 million or 51 cents a share, from $1.3 billion or 66 cents a share in the same quarter last year.

Company's revenue declined 7% to $8.60 billion for the quarter ended June 27.

Excluding some costs, Disney registered profit of 52 cents per share, beating the 51-cent average estimate of analysts.

ABC's profit dropped about 34% to $204 million as sales declined 4%. Advertising sales plunged around 30% in the period.

Though, ESPN plus other cable networks performed well, yet media networks witnessed a fall of 13% in operating profit, while theme-park profits tumbled 19%.

In the after hour trading, Disney shares fell by about 3.5%.