Breaking out ESPN’s financial results for the first time, The Walt Disney Co. said that the sports-programming titan had operating income of $1.89 billion for the first nine months of the company’s fiscal year, down 8% from the same period a year ago.
The disclosure, in a filing with the Securities and Exchange Commission, is the result of a reorganization at Disney that sets up the company’s sports business as a separate division.
ESPN revenues were up 3% to $12.6 billion for the first nine months of the fiscal year
ESPN has been squeezed by higher costs for sports rights and flat revenue as cord-cutting erodes its cable TV subscriber base.
In the U.S., ESPN's operating income is down 4% to $1.9 billion. Revenues are up 2% to $11.4 billion.
So far this year, Disney’s new sports group, which includes ESPN and Star India, has generated affiliate-fee revenue of $10.8 billion, advertising revenue of $4.4 billion and subscriber-fee revenue of $1.1 billion.
Disney is reportedly engaged in talks to sell Star in India.
NOTE: An earlier version of this story mistakenly included losses at Star in ESPN's operating income and revenue results.
