Walt Disney Pressured By Sagging ESPN Performance
February 07 2017 - 5:08PM
Dow Jones News
By Ezequiel Minaya
Walt Disney Co. reported Tuesday that ESPN once again weighed on
its business, as revenue for the fiscal first quarter came in below
expectations.
During the three-month period ended Dec. 31, the entertainment
giant had a runaway success with the latest installment of the Star
Wars franchise, "Rogue One: A Star Wars Story."
But the company's cable operations were pressured by the
performance of sports network ESPN amid declining advertising and
shifting tastes as more consumers elect to cut cable out of their
budgets.
Shares, up 16% this year, fell 2% to $106.75 in recent
after-hours trading.
For the quarter, revenue in Disney's media networks segment,
which includes its cable operations, decreased 2% to $6.23 billion
and operating earnings fell 4% to $1.36 billion. Cable revenue
declined 2% to $4.43 billion and operating profit fell 11% to $864
million amid declines at ESPN.
Over all, Walt Disney reported a profit of $2.48 billion, or
$1.55 a share, down from $2.88 billion, or $1.73 a share, a year
earlier. Excluding certain items, earnings remained at $1.55 down
from $1.63 a year earlier. Revenue decreased 3% to $14.78
billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.49 and revenue of $15.26 billion.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
February 07, 2017 16:53 ET (21:53 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Apr 2023 to Apr 2024