Beauty and beast report from Disney
Film profit up 21% on high-grossing hit but cable division in the doldrums
Walt Disney has failed to assuage investor concern about its cable division, saying profit in the business slumped last quarter as ESPN continued to lose subscribers, while spending more to televise games. Sales in the cable division totalled $4.06bn, trailing the $4.2bn average of analysts’ estimates. The unit’s profit slid 3%, the company said. The results show Disney struggling to get a handle on the troubles at its largest business: TV programming. The owner of ESPN and ABC has suffered a slide in ratings as audiences watch more video online, while sports leagues keep demanding more money. The company is paying $600m more for rights to National Basketball Association games alone, and a shift in college football schedules also lifted expenses. The cable unit’s woes overshadowed positive results in other divisions. The entertainment company said on Tuesday that total profit rose to $1.50 a share in the fiscal second quarter ended April 1, beating the $1.41-a-share average of analy...
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