Disney Shares On Track For Largest Single Day Drop Since May 2016 Amid ESPN Issues
By Thomas Barrabi, Fox Business // August 9, 2017
ABOVE VIDEO: Disney (DIS) shares are on track for their largest single-day drop in more than a year on Wednesday, hours after the company said struggles at ESPN contributed to a major decline in operating income at its cable networks.
(FOX BUSINESS) – Disney (DIS) shares are on track for their largest single-day drop in more than a year on Wednesday, hours after the company said struggles at ESPN contributed to a major decline in operating income at its cable networks.
Operating income at Disney’s cable networks dropped to $1.5 billion in the third quarter, down 23% from the same period one year earlier.
The company attributed the downturn to higher programming costs associated with ESPN’s new NBA contract and lower advertising revenue amid decreased viewership.
Disney’s stock fell more than 4% in early trading. If shares close below that threshold when trading ends on Wednesday, it will mark Disney’s first single-day drop of 4% since May 2016, according to Dow Jones.
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