ESPN Has Challenging Q2, Though Disney Overall Sees Profits Climb

Disney reported an 11% jump in Q2 profit, but the company's "closely watched media networks unit, which includes ESPN, had a tough quarter." Operating income fell 3% to $2.2B, which the company "attributed in part to higher programming costs and subscriber losses." Disney Chair & CEO Bob Iger "extolled ESPN’s forthcoming standalone multi-sport subscription streaming service," scheduled for release by year's end (L.A. TIMES, 5/10). Iger also "touted the presence of ESPN and other Disney networks on new less-expensive 'skinny' TV packages." But he "conceded they aren’t making up for losses from traditional cable and satellite packages" (WALL STREET JOURNAL, 5/10).

In pre-market trading, Disney shares were down 2.35% to $109.44 (THE DAILY).