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Disney declines - Broadcasting & Cable

Disney declines

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Disney's broadcasting and cable networks both showed declines in operating income for its fiscal fourth quarter ended Sept. 30.

The ABC network and the owned stations combined posted a 4% drop in revenues to $1.2 billion and a $110 million drop in operating income-from $87 million last year to negative $23 million this year.

Although cable network revenues rose 17% to $1.3 billion, operating income plunged 40% to $170 million.

The company blamed ABC's problems on higher costs for buying series, the addition of three NFL games and slack advertising.

The problems in cable include higher sports-rights costs at ESPN and high costs for generating ad sales at both ESPN and 50%-owned Lifetime.

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