Walt Disney Co missed Wall Street estimates for quarterly profit on Tuesday due to higher programming costs and another drop in subscribers at ESPN.
Shares of the company, which have gained nearly 9 per cent this year, fell 1.9 per cent to $113.66 after the bell.
Disney's cable networks business has been under pressure as viewers shift to streaming services such as Netflix and Amazon.com's Prime.
As a counter, Disney is buying the film and television assets of Rupert Murdoch's Twenty-First Century Fox Inc for $71 billion and said in August 2017 it would develop its own streaming services to grab digital viewers.
Revenue from the cable networks business, which includes ESPN and the Disney Channels, rose 2.5 per cent to $4.19 billion. Analysts on average had expected $4.28 billion. Revenue from Disney’s studio business, which produces and acquires live-action and animated motion pictures, rose 20.3 per cent to $2.88 billion, missing the average analyst estimate of $2.94 billion.
Below estimates
Net income attributable to Disney rose to $2.92 billion, or $1.95 per share, in the third quarter ended June 30th, from $2.37 billion, or $1.51 per share, a year ago. On an adjusted basis, Disney earned $1.87 per share, below estimates of $1.95 per share.
Total revenue rose 7 per cent to $15.23 billion, but missed analysts’ expectation of $15.34 billion. – Reuters
