Disney Falls As TV Networks Continue To Drag On Revenue

Walt Disney Co. shares declined in late trading Tuesday after the entertainment giant reported better profit than expected, but lower revenue. Disney reported net income of $2.48 billion, or $1.55 a share, on revenue of $14.78 billion for its fiscal first quarter after trading ended on Tuesday. Analysts on average expected Disney to report profit of $1.49 a share on sales of $15.3 billion. The shortfall in revenue was largely attributable to the continued decline of the company's television business, which has been hurt by a decline for sports-TV titan ESPN. The media networks business pulled in $6.2 billion in the quarter, about $200 million less than expected and a 2% decline from the same quarter a year ago. Disney cited "higher programming costs and lower advertising revenue" at ESPN as a drag on operating income for the segment. Disney shares fell about 2% in late trading following the report's release, dipping close to $107 after closing the day's session with a 0.5% decline at $109.