Walt Disney delivered quarterly earnings and revenue on Thursday that were largely in line with Wall Street expectations, but revenue generated by the company's media networks segment trailed estimates.
The company, which operates the ESPN and ABC television networks, said revenue from its cable and broadcasting sectors rose to $5.22 billion. That figure, which represents the castle in Disney's holdings, was up 5 percent from a year ago but below the $5.25 billion StreetAccount analysts had expected.
The media conglomerate posted fiscal fourth-quarter earnings of 89 cents per share, up from 77 cents a share in the year-earlier period.
Revenue rose to $12.39 billion from $11.57 billion, driven by record park attendance and strong studio sales.
Analysts had expected the company to report earnings of 89 cents per share on $12.37 billion in revenue, according to a consensus estimate from Thomson Reuters.
As rival media companies, including CBS, consider offering direct-to-consumer options to target cord cutters, Disney CEO Bob Iger told CNBC that cable or satellite packages still have value and he is in no rush to abandon bundles.
He said the company might experiment with direct-to-consumer services in the future but it is "taking a cautious approach."
Disney wants to "maintain what is obviously a value creator for this company and for a lot of other companies in the media industry," Iger said, referring to cable packages.
The number of homes with multichannel bundles are "down ever so slightly from a year ago ... [but] it's still the dominate package that consumers are buying," Iger said.He attributed the decline to millennials who are "signing up for the bundles a little bit later than before."
If cord cutting continues to accelerate "We're probably better positioned than anyone, given the strength of our brands and the quality of our programming" to reach the consumer directly, Iger said.