Disney disappoints despite box office success

Disney disappoints despite box office success

Walt Disney has fallen short of Wall Street expectations for the first time in five years, despite several box office successes, BBC reports.

 

The entertainment giant said second quarter net income rose to $2.1bn with earnings per share up 6% to $1.30, below forecasts of $1.40 a share.

 

Films like "Star Wars: The Force Awakens" and "Zootopia" helped drive up revenue but cable subscribers fell.

 

Disney's shares fell 6% in after hours trading.

 

The declining membership to Disney's sports channel -ESPN- has worried investors over the past year.

 

Revenue from the company's cable television network fell 2% to $3.9bn as advertising income dropped.

 

Disney, like other traditional media companies, has been hurt as more consumers move from television to streaming services.

 

The studio division continued to generate strong profits.

 

The animated movie "Zootopia" brought in $73.7m.

 

Photo: BBC