You are here: Home » Reuters » News
Business Standard

Disney profit, revenue misses Street as cable business weighs

Reuters 

(Reuters) - Co reported lower-than expected quarterly and profit on Thursday, dragged down by a poor performance at its cable business, including a drop in subscribers at ESPN.

The company's shares fell about 3 percent to $99.59 in trading after the bell.

The come after CNBC reported on Monday that had, in the last few weeks, held talks about buying most of Twenty-First Century Fox's film and television assets. The two sides are not currently in discussion, CNBC had reported. [nL3N1NC5IJ]

did not address the report in its earnings release.

and other media companies are battling "cord cutting" as viewers defect to streaming video services such as Netflix Inc and Amazon.com Inc's Prime.

A deal with Fox would help bring additional programming it could use to lure larger audiences and add significantly to its content library, especially as it plans to start providing its own streaming services.

from Disney's cable business, which includes ESPN and Channel, fell marginally to $3.95 billion in the fourth quarter, while analysts on average were expecting a rise to $4.06 billion, according to Thomson I/B/E/S.

ESPN, Disney's cash-cow, has been trying to combat subscriber declines by joining smaller bundles of cable channels and developing a streaming service it will sell directly to consumers.

Disney's movie business generated of $1.4 billion in the quarter, down about 21 percent and missing analysts average estimate of $1.61 billion.

Disney's total fell to $12.78 billion in the quarter ended Sept. 30 from $13.14 billion a year earlier.

Net income attributable to the company declined to $1.75 billion from $1.77 billion. Excluding items, it earned $1.07 per share. [nBw7dpw9Ka]

Analysts on average had expected a profit of $1.13 per share and to rise to $13.23 billion.

Disney's full-year adjusted profit was $5.70 per share. Chief Executive Bob Iger had warned in September that earnings would be roughly in line with the year-ago' $5.72.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Savio D'Souza)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 10 2017. 03:02 IST
RECOMMENDED FOR YOU