ESPN is crushing Disney
REUTERS/Michelle McLoughlin
The media and entertainment giant said Thursday that its adjusted earnings per share was $1.10, but analysts had expected $1.16 according to Bloomberg. Sales totaled $13.1 billion, short of the forecast for $13. 5 billion.
ESPN advertising revenue fell because of fewer impressions and lower rates, Disney said in its earnings statement. Programming costs were also higher, escalated by the costs of Olympics programming, rights to air the World Cup of Hockey, and higher rates for college sports.
And like other cable networks, ESPN is grappling with a consumer shift towards cheaper streaming services and away from cable and satellite bundles.
In all, operating income at Disney's cable networks fell 13% year-on-year to $1.4 billion. Income at parks and resorts was also lower after attendance at Hong Kong Disneyland Resort fell, and weakness at Disneyland Paris.
Walt Disney Walt Resort in Florida experienced sales growth after cost cuts and higher ticket prices.
"Fiscal 2016 was our sixth consecutive year of record results, highlighted by the opening of Shanghai Disney Resort, the phenomenally successful return of Star Wars, and our Studio's record-breaking $7.5 billion in total box office," said CEO Robert Iger in the earnings statement.
Disney shares fell by as much as 3% in after-hours trading. They slumped 9% this year through the market close on Thursday.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas