– This is the script of CNBC's news report for China's CCTV on August 5, Wednesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Walt Disney on Tuesday posted quarterly earnings that topped Wall Street estimates but revenue that came in below projections as international theme park growth slowed.
The media and entertainment giant posted earnings of $1.45 per share on $13.1 billion in revenue, up 13 and 5 percent year over year, respectively. Shares initially fell about 2 percent in extended trading, but shed another 4 percent after executives reined in expectations for television subscribers as consumers move away from traditional cable packages.
Analysts expected Walt Disney to report earnings of $1.42 a share on $13.23 billion in revenue, according to a consensus estimate from Thomson Reuters.
Disney's studio entertainment revenue climbed 13 percent to $2.04 billion, boosted by Marvel blockbuster "Avengers: Age of Ultron." Analysts have looked for that segment to drive bigger returns with the reboot of the Star Wars franchise later this year.
Sales in the company's media networks-its biggest segment, which includes ABC and ESPN-rose 5 percent from the year-earlier period to $5.77 billion. In the company's conference call, CEO Bob Iger detailed subscriber losses for crucial television channels and the "continued development" of new TV alternatives.
But Martin Pyykkonen, a senior research analyst at Rosenblatt Securities, noted that strength in other businesses, as well as a potential standalone ESPN subscription in the future, could help mitigate those losses.
[Bob Iger] "Although we believe the expanded basic package will remain the dominant package of choice for some years to come, because the quality and variety it represents, but price is generally considered fair, and appropriate. We also see the continued development of new platforms with smaller channel offerings."
The company's parks and resorts business was sluggish internationally, held back by higher operating costs as well as lower attendance at its Hong Kong location.
Revenue in the segment still increased 4 percent year-over-year to $4.1 billion. U.S. parks had strong attendance growth, the company said.
And don't forget, Disney will launch a new theme park in Shanghai soon, hoping the rising Chinese middle class will give the company a boost.
[NEIL MACKER Morningstar Equity Analyst] "I was a little disappointed on the revenue guildence, on the cable side, but I understand where the company is coming from, in terms of FX and how they do hedging. Really for me, the key for the company is what's going to happen right now for Starwars coming up in this December, and the Shanghai resort next spring. and how's that gonna affect the numbers going forward really."
The other factor working against Disney and the rest of big media is mobile.
The marketplace forces undermining traditional media conglomerates are being exploited by Netflix and other direct-to-consumer offerings, as more and more television viewers cut the cord on cable and satellite channel bundles, media analysts said.
CNBC's Qian Chen, reporting from Singapore.
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