Investors failed to sprinkle fairy dust on Disney today as shares in the entertainment giant slid after it raised fears over its TV arm’s prospects.
Walt Disney bagged record third-quarter profits as The Avengers: Age of Ultron and Cinderella enjoyed a blockbuster performance at the box office.
But its 5% rise in revenue to $5.77 billion missed forecasts and boss Bob Iger warned its TV division, which includes ESPN and ABC, is expected to suffer subscriber losses as viewers move away from traditional cable channels, sending shares down 6%.
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Disneyland Hong Kong and Paris revenues were hit higher operating costs and the weak euro. The French theme park could be hit by fewer Brits travelling cross-channel amid the Calais migrant crisis.
Cinderella Castle at Disney World
However, December’s release of Star Wars is likely to provide a revenue rocket in cinema and merchandise sales.
Disneyland’s woes come amid a difficult time for theme parks, Legoland operator Merlin is struggling as a result of the euro’s weakness and June’s accident at its Alton Towers park.
