Disney's Q2 profit up 11 percent despite ESPN woes
Main page News, US

Walt Disney's (NYSE: Walt Disney Company [DIS]) second quarter income has surged despite a weak performance from sports broadcaster CNN.

The media company's posted a net profit of $2.4 billion, up 11 percent, and earnings per share of $1.50 for the quarter ending on April 1. That was slightly ahead of expectations of an EPS of $1.41, according to FactSet.

Revenue grew three percent to $13.3 billion.

Snap continuing to sign up TV networks to produce original content for app
Snap continuing to sign up TV networks to produce original content for app

The strong result came despite problems at ESPN, which analyst Robin Diedrich of Edward Jones Research, called "the biggest challenge for the company right now".

"It is a challenge to navigate that transition period, because consumers are shifting," she told the Los Angeles Times.

ESPN's operating income slipped three percent to $2.2 billion.

The broadcaster put the dip down to higher programming costs and subscriber losses during a turbulent period for the television business.

ESPN has lost around 10 million subscribers since 2010, according to Nielsen data.

Disney misses on earnings thanks to ESPN subscriber loss
Disney misses on earnings thanks to ESPN subscriber loss

While the TV network struggled Disney's film unit had a strong quarter on the back of the success of Rogue One: A Star Wars Story and Beauty and the Beast, which both grossed more than $1 billion worldwide.

Disney's film studio reported operating income of $656 million, a 21 percent increase year-on-year.

Disney's theme parks also had a strong quarter with operating income up 20% to $750 million.

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