The Walt Disney Company has reported that Q3 operating income for its media networks segment dropped 12 per cent to $1.5 billion (€1.29bn) as multiple factors impacted earnings.

The entertainment giant blamed the decline on contractual rate increases for sports programming, lower advertising revenue and higher losses from equity investments in BAMTech and Hulu, all partially offset by higher affiliate revenue. Overall revenues for the segment decreased 3 per cent to $5.5 billion.

Disney’s cable networks remained largely flat, but the broadcasting segment saw its revenues fall 11 per cent and its operating income fall 15 per cent year over year.  Results for its ESPN sports network remained flat as higher programming costs and lower advertising revenue were offset by higher affiliate revenue.

The broadcast losses were attributed to lower advertising revenue caoused by lower network impressions, a steep decline in political advertising and no Emmy Awards show.

“No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company,” said Bob Iger, CEO of The Walt Disney Company, in a statement.