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Walt Disney Co. is singing the ad blues.
The entertainment and media giant reported higher quarterly profit yesterday, boosted by spending at its theme parks and higher fees for its cable networks.
Still, the company fell short of revenue expectations after weaker ad sales and lower film revenue weighed on results.
The Olympics on NBC diverted ratings and ad dollars from its flagship ABC network. Ad sales also were flat at ESPN as a result of the games.
In the film division, revenue declined due to fewer releases and higher write-downs on movies. In particular, “Brave” didn’t do as well as “Cars 2” a year ago.
Last week, Disney CEO Bob Iger announced the company would buy Lucasfilms to gain control of the “Star Wars” franchise. Disney plans to release three more films in the series, including Episode 7 in 2015.
Net profit jumped 14 percent to $1.24 billion, or 68 cents a share. That compares to $1.09 billion, or 58 cents, a year ago.
Overall, revenue rose 3 percent to $10.8 billion, slightly below the $10.9 billion analysts expected.
The earnings report, made public after the close of stock trading yesterday, weighed on the shares.
The stock, which has risen 33 percent this year, fell 2.58 percent in extended trading.
Earlier the shares fell 4 percent to close at $50.02.
Disney said its division that includes ESPN, the Disney Channel and ABC reported operating income of $1.2 billion, up 7 percent from a year earlier.
Higher fees charged to cable and satellite distributors for carrying cable sports powerhouse ESPN lifted results and offset weaker ad revenue.
Morningstar analyst Michael Corty said Disney produced “another solid quarter” particularly with its cable networks business, but that revenue was below expectations.