ESPN’s Woes Weigh on Disney

Walt Disney Co. failed to pacify investors' worries regarding its cable unit, as it reported that profit in the business slump in the latest quarter.

ESPN saw a decline in subscriber and drained more money due to its higher programming expenditures. The unit's worries eclipse a quarterly profit that beat projections, causing Disney shares to retreat 2.4 percent in extended trading.

The cable division's sales registered at $4.06 billion, shy of the $4.2 billion average estimates by analysts. The business' profit also fell by 3 percent, according to the firm, due to the higher costs for NBA games and football.

The quarterly results reveal the biggest entertainment company struggling to manage the issues at its biggest business. Investors have been closely monitoring how ESPN will handle the shift in television as viewers turn away from old school pay TV services and shift towards online services. Despite Disney adding new customers on new digital platforms, it was not enough to offset the subscriber losses in its basic cable division.

The cable division's problems overshadowed the strong results in other businesses. Disney's total profit climbed to $1.50 per share in the second quarter, beating estimates of $1.41 per share.

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