Shares of the Walt Disney Company fell after the company said in its third-quarter report that issues at ESPN impacted operating income for its cable business.
The segment saw operating income decline 23 percent year over year amid trouble at ESPN, Disney said in a statement. The sports network was plagued by higher programming costs and lower advertising revenue, as well as severance and contract termination costs.
On Wednesday, the stock closed nearly 4 percent lower at $102.83. It was the stock's worst day since May 2016, when it fell 4.04 percent.
CEO Bob Iger has repeatedly defended the business, previously telling CNBC that the company is "confident in ESPN's future" and believes "live sports is still a huge driver of consumption."
The broader media and networks segment also reported operating income that missed Wall Street projections.
Here's what Disney reported as operating income for each segment, compared with analysts' expectations, according to StreetAccount consensus estimates:
- Media and networks: $1.84 billion vs. $1.99 billion expected
- Parks and resorts: $1.17 billion vs. $1.09 billion expected
- Studio: $639 million vs. $636.6 million expected
- Consumer and interactive: $362 million vs. $394.6 million expected