• by Wayne Friedman , February 7, 2017

Walt Disney’s two big TV networks -- ABC and ESPN -- scored underwhelming advertising fiscal first-quarter results.

ESPN’s advertising revenue was down “due to lower impressions and rates.” In particular, ESPN only had three college football playoff games in the quarter versus six a year ago -- which had an impact.

All this contributed to a 2% decline overall for Disney-ABC cable network TV revenue to $4.4 billion -- with operating income down a big 11%.

Disney’s broadcasting business also suffered a bit when it came to non-political advertising sales hurt by “a decrease in network impressions.” Still, ABC’s owned TV stations benefited from higher political advertising. This resulted in flat broadcasting advertising revenues for the period.

Overall, Disney’ broadcast revenues were flat at $1.8 million, with a 28% gain in operating income at $379 million, and much of the positive news coming from higher affiliate revenue fees.

Company-wide Disney revenue came in at $14.7 billion, down 3% from the first quarter a year ago -- somewhat under analysts' estimates. Net income sank 14% to $2.5 billion, a bit better than expected.

On CNBC, Bob Iger, chairman/CEO of Walt Disney Co., reiterated that “we have seen some erosion” in ESPN subscribers. But he added that ESPN is making sure to launch on every new digital/over-the-top (OTT) platform. “It is certainly going to occupy a good part of the future,” he said.

Through its BAMTech acquisition, a video streaming technology company, Iger says Disney intends to launch a multi-sports OTT sports service in 2017. Nielsen will help with this -- aggregating those OTT subscribers. “We believe at some point in 2017 those subscribers will be fully measured and it will have some impact.”

Disney’s Parks and Resorts were the big positive news for this quarter: Revenues grew 6% to $4.6 billion with operating income 13% higher to $1.1 billion. This came from an increase in guest spending which was offset by lower attendance.

Disney’s studio entertainment had 7% less revenues to $2.5 billion and 17% lower operating income to $842 million.

The decline stemmed from the prior-year quarter, where the company had big results from “Star Wars: The Force Awakens.” The unit was also affected this year by lower home entertainment results “Star Wars” Classic titles and “Frozen.”