Disney’s most important brand, ESPN, saw an increase in subscribers but it wasn’t enough to please Wall Street on Tuesday.
During a Tuesday earnings call with investors, Disney ( CEO Bob Iger announced that the sports network had an “uptick” in subscribers over the last couple of months. )
Iger cited an interest of sports and smaller cable bundle packages like Sling had helped to bring in young people and cord-cutters to cable packages leading to the uptick
According to Iger, the company also had its “greatest single quarter in the history” thanks to “Star Wars: The Force Awakens” which propelled the Mouse House to record box office totals.
Yet, the news wasn’t good enough for Wall Street.
The company’s stock was down as much as 6% in after hours trading on Tuesday evening. It ended the after hours trading down roughly 3%.
Before the call, Iger told CNBC that ESPN continues to be a growth business and that “the prediction that there would be a rapid demise of the [cable] bundle is way too exaggerated.”
Disney reported overall revenues of $15.2 billion with huge growth in its studio entertainment thanks to “The Force Awakens.”
“Star Wars: The Force Awakens” just crossed $2 billion at the box office globally and the company hopes to sustain the film’s obsessive fandom with “Rogue One: A Star Wars Story” hitting theaters in December.
The company’s cable networks, which includes ESPN, reported revenue of $4.5 billion which exceeded analyst predictions of $4.4 billion.
The company’s earnings came following a day that saw some media stocks take a hit including Viacom which saw its shares plunge 21%.