• by Wayne Friedman , May 9, 2019

Advertising at Walt Disney’s media networks sank 3% in its fiscal second quarter, with affiliate fees up 4% -- below some industry estimates.

Total media networks' revenue was flat at $5.5 billion: Disney stock was relatively unchanged on Thursday at $135.134, a day after the company released its financial results late Wednesday.

Todd Juenger, media analyst at Bernstein Research, writes: “Disney stock has not reacted to the pay-TV subscribers declines as badly as other, more pure play media stocks.”

This is due to Disney being more diversified, as well as its mostly positive reviews concerning its future direct-to-consumer platforms. “We shall see if that remains true, now that the impact has shown up directly in the media networks results,” he adds.

Overall, Disney’s second-quarter revenue was up 2.5% to $14.9 billion.

Neil Begley, Moody's senior vice president-lead Disney analyst, says: “Strength in the Walt Disney company’s film slate, strong demand in the parks, and the potential for a strong Disney+ SVOD [subscription video on demand] launch overshadow weakness in traditional network linear advertising and subscriptions.”

Cable revenues were up 2% to $3.71 billion, with broadcasting down 2% to $1.82 million. Broadcasting advertising was up 3% in the period, with cable advertising 2% lower -- the latter due to a shift in several college football playoff games on ESPN.

Disney’s Parks was up 5% to $6.2 billion, with its studio entertainment unit down 15% $2.1 billion. The latter was due to a decrease in theatrical distribution revenue versus year-ago quarter results, when Disney had “Black Panther” and “Star Wars: The Last Jedi.”

Disney’s expanding and higher-profile direct-to-consumer and international business has grown 15% to $955 million. Much of that business is being pushed by ESPN+ --- which launched in April 2018 last year.

Revenues from its recently closed deal for 21st Century Fox businesses added $373 million.

Hulu witnessed a one-time income gain of $4.9 billion, due to the closing of its deal acquiring 21st Century Fox business. Disney now has more than a 60% interest in Hulu.