By Lisa Richwine and Vibhuti Sharma
(Reuters) - Walt Disney Co
Shares of Disney, which had risen 27% this year and hit an all-time high last week, dropped 5% in after-hours trading to $135.
Excluding certain items, Disney earned $1.35 per share, below average analyst estimates of $1.75 per share, according to IBES data from Refinitiv.
Disney, the owner of ESPN, a movie studio and theme parks around the world, is investing in digital media platforms to compete with Netflix Inc
Disney's biggest digital bet, a family-friendly subscription service called Disney+, is scheduled to debut in November. Adult-oriented programming will be concentrated on Hulu, which Disney now controls.
Competitors from AT&T Inc's
The direct-to-consumer and international unit reported an operating loss of $553 million, up from $168 million a year earlier, from consolidation of Hulu and spending on Disney+ and the ESPN streaming service.
At the theme parks unit, overall operating income rose 4% to $1.7 billion but declined at Disney's U.S. parks. The company attributed the drop to expenses for an ambitious "Star Wars"-themed expansion in late May at California's Disneyland and lower attendance.
Media networks, which includes ESPN, the Disney Channels and FX, reported a 7% increase in operating income to $2.1 billion.
A blockbuster movie slate led by "Avengers: Endgame," the highest-grossing movie of all time, and the addition of cable networks purchased from Twenty-First Century Fox Inc helped boost revenue to $20.2 billion.
"Endgame" boosted movie studio profit to $792 million, along with hits "Toy Story 4" and "Aladdin."
(Reporting by Lisa Richwine in Los Angeles and Vibhuti Sharma in Bengaluru; Editing by Arun Koyyur and Lisa Shumaker)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Updated Date: Aug 07, 2019 03:05:41 IST