Telecoms Lower as Disney, Discovery Earnings Disappoint -- Telecoms Roundup

Shares of telecommunications companies declined as earnings continued to disappoint.

The telecom sector of the Standard & Poor's 500 has reported an aggregate decline of 4.9%, according to Thomson Reuters.

Shares of Walt Disney fell after higher costs at the entertainment conglomerate's struggling ESPN unit offset growth at its theme parks and elsewhere once more.

Discovery Communications fell after the cable network's quarterly revenue was shy of some investor expectations. "One of the key data points coming out of Discovery's first-quarter call, in our view, was that total US subscriber declines accelerated sequentially, which could renew concerns around the long-term trajectory of US distribution revenue," said analysts at brokerage Nomura Securities, in a note to clients.

DHX Media agreed to acquire the entertainment unit of licensing company Iconix Brand, which owns a majority stake in the Charles M. Schulz-created Peanuts universe.

Weeks after Time decided not to sell itself, the media company said Wednesday its executive chairman will resign, weighing on shares.

Rob Curran,

(END) Dow Jones Newswires

May 10, 2017 17:36 ET (21:36 GMT)