Pursuits

Disney Sinks Lower as ESPN Profit Overshadows ‘Star Wars’

  • Programming costs, subcriber losses, dollar hit sports network
  • Studio, consumer units post gains from latest film release

Disney Tops Estimates as 'Star Wars' Boosts Film Division

Lock
This article is for subscribers only.

Walt Disney Co. shareholders overlooked a record quarter for sales and earnings and focused on flagging profits at ESPN sports network, a sign of how uneasy investors have become about the splintering of the cable-TV industry’s traditional business model.

Disney slumped 3.3 percent to $89.25 in extended trading Tuesday after fiscal first-quarter results were announced. The shares had already fallen 12 percent this year, part of a selloff in media stocks as investors fret over cable subscriber defections and competitive threats like Netflix and Hulu.