Disney Q3 Cable Networks sales declined 3% to $4.1B
Disney said its Cable Networks revenues for the quarter decreased 3% to $4.1B and operating income decreased 23% to $1.5B. Lower operating income was due to a decline at ESPN. It explained, "The decrease at ESPN was due to higher programming costs, lower advertising revenue and severance and contract termination costs, partially offset by affiliate revenue growth. The programming cost increase was due to a contractual rate increase for NBA programming, partially offset by a decrease in the cost of time for ESPN programming aired on the ABC Television Network. Lower advertising revenue was due to a decrease in average viewership and lower units delivered including the impact of two fewer NBA finals games, partially offset by higher rates. Affiliate revenue growth was due to contractual rate increases, partially offset by a decline in subscribers."