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Media

Disney shares lifted after disappointing fourth quarter but record year

The iconic firm posted a 3% fall in revenue in the fourth quarter compared to the same time last year

Media and TV giant Disney (NYSE:DIS) saw shares rise in pre-market despite its quarterly results being hit by struggles in its media network business and sports media divisions.

The group, known the world over, posted a 3% fall in revenue in the fourth quarter compared to the same time last year to US$13.14bn.

Analysts had expected revenue of US$13.52bn.

The group however was bullish on the year as a whole.

Bob Iger, chairman and chief executive, told investors: “We’re very pleased with our performance for the year, delivering the highest revenue, net income and earnings per share in Disney's history.

"Fiscal 2016 was our sixth consecutive year of record results, highlighted by the opening of Shanghai Disney Resort, the phenomenally successful return of Star Wars, and our Studio's record-breaking $7.5 billion in total box office.

"We remain confident that Disney will continue to deliver strong growth over the long-term as we further strengthen our brands and franchises, our technological capabilities, and our international presence."

Its media networks group is its biggest source of sales, but saw revenue dip 3% from the prior year to $5.66 billion, while operating income dropped 8% to US$1.7bn.

Its cable networks arm took a hit from lower advertising revenue and higher costs for sports broadcaster ESPN, which has suffered from rising price for rights to live sports broadcasts.

Data recently showed ESPN lost 621,000 subscribers in one month, which Disney had disputed. Disney shares in New York gained 2.59% to stand at US$97.45 each.

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