Disney (WALT) Co. (HOLDING COMPANY) (NYSE: DIS) Tuesday reported fiscal first-quarter earnings that fell short of Wall Street estimates, harmed by a decrease subscribers and raising cost at ESPN.
Total revenue fell 3 percent to 14.8 billion in the quarter ended Dec. 31., missing analysts’ estimates of $15.26 billion. While profit fell as much as 10 percent to $1.55 per share, beating analysts’ estimates of $1.49 per share.
“We’re very pleased with our financial performance in the first quarter. Our Parks and Resorts delivered excellent results and, coming off a record year, our Studio had three global hits including our first billion-dollar film of fiscal 2017, Rogue One: A Star Wars Story,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “With our proven strategy and unparalleled collection of brands and franchises, we are extremely confident in our ability to continue to drive significant value over the long term.”
The company said operating income from the media networks segment fell 4 percent year-over-year. The weakness in its sports network ESPN continued to weigh on revenue from the segment. ESPN has been struggling from attracting new subscribers in the recent years. Higher programming costs and lower advertising revenue are also blamed for weak performance in ESPN.
Disney shares rose 0.8 percent to $109.81 in the early trading in New York.