As The Walt Disney Company (NYSE:DIS) searches for a “strategic investor” for its ESPN brand, it revealed that the sports broadcaster brought in around US$12.5 billion in the first nine months of the financial year.
Revenue in the conglomerate's sports segment, which covers ESPN’s TV network and streaming service as well as minor contributions from India-based Disney Star, fell slightly quarter-on-quarter from US$4.6 billion in the first three months to US$4.3 billion in the quarter to July 1.
Disney split itself into three key divisions earlier this year – sports, entertainment, and experiences – as part of a wider reshaping of the company, which also led to 7,000 layoffs, cost cuts, and board changes.
Hoping to attract an equity investor to work as a strategic partner, Disney said early conversations had been held for potential funding, but nothing yet has come to fruition.
ESPN, which has eight branded TV channels in the US along with separate shows and international networks, brings in a significant portion of revenues from activities including pay-per-views, sub-licensing of sporting rights, and programming on ABC, a trading update revealed.
Charging some of the highest TV fees within the company, the sports network provided more than US$12.5 million in revenues during the first three quarters, US$11.4 million of which came from domestic sales.
Posting an operating loss of US$41 million during the three months to December 31, 2023, ESPN swung back into the black and in the quarter to July posted operating incomes of US$1.8 billion.
Disney shares stayed flat in aftermarket trading on Thursday, having closed in New York at around US$85.