ESPN drags down Disney

The Walt Disney Company has reported Q1 results with revenue decreased 3 per cent year over year to $14.8 billion (€13.8bn), primarily due to weak performance by Disney’s media networks, where revenues fell 2 per cent year over year and operating income declined 4 per cent, due to higher programming costs and fewer subscribers of the media networks.

A 10 per cent year on year decline in Q1 earnings were partly attributed to the strength of Star Wars: The Force Awakens in the previous quarter.

ESPN continued to weigh heavily on earnings. The networks weak results were driven by a 7 per cent decline in its advertising revenue compared to the same period last year. The NFL saw consistent declines in viewership this season in the first quarter, with NFL Nielsen ratings down 8 per cent for the 2016 season.

Disney’s Media Networks revenue for the quarter decreased 2 per cent year over year to $6.2 billion.

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