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Disney disappoints despite blockbusters

Do Not UseDo Not Use 10/05/2016
Disney characters © Getty Images Disney characters

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

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 in its opening weekend.

Revenue for the studio unit rose to $2.1bn from $1.68 last year.

"Our studio's unprecedented winning streak at the box office underscores the incredible appeal of our branded content, which we continue to leverage across the entire company to drive significant value," said chief executive officer Bob Iger.

Disney is struggling to layout a succession plan for Mr Iger. His expected replacement Tom Staggs, officially stepped down last week. Mr Iger has said he plans to leave in 2018.

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