Disney’s stock was down almost 7% to $99.65 a share. Revenue was down 4% to $12.97 billion in its second fiscal quarter, with net revenues up just 2% to $2.1 billion.
Disney’s Media Networks business was virtually unchanged at $5.79 billion -- with its cable networks down 2% at $3.95 billion and its broadcast business 3% higher at $1.84 billion.
For cable, there was a profit increase at ESPN due to lower programming costs, but a decline at A+E Networks from a decrease in advertising revenue and higher programming costs. In addition, there was a negative impact in converting the A+E Network H2 to Viceland.
Disney’s broadcasting business witnessed higher advertising and affiliate revenue growth. Broadcasting operating income declined 8% due to $278 million due to significant SVOD sales in the prior-year quarter and a higher “cost mix” of programs sold in the current quarter.
Disney’s Parks and Resorts improved 4% to $3.93 billion as a result of an increase in domestic park business, and a decrease in international operations.
Disney’s Studio Entertainment was up 22% to $2.06 billion. Big theatrical film business came from "Star Wars: The Force Awakens" and "Zootopia."
Revenue for consumer products/interactive media was down 2% to $1.19 billion. Increased licensing revenues came from “Star Wars” merchandise, with a decrease in revenue from merchandise based on “Frozen.”
Disney has taken a $147 million charge against earnings, closing its video game console “Infinity”-brand business.