Disney's Q2 profit up 11 percent despite ESPN woes
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Walt Disney's (NYSE: DIS) second quarter income has surged despite a weak performance from sports broadcaster CNN.

The media company's posted a net profit of $2.4 billion, up 11 percent, and earnings per share of $1.50 for the quarter ending on April 1. That was slightly ahead of expectations of an EPS of $1.41, according to FactSet.

Revenue grew three percent to $13.3 billion.

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The strong result came despite problems at ESPN, which analyst Robin Diedrich of Edward Jones Research, called "the biggest challenge for the company right now".

"It is a challenge to navigate that transition period, because consumers are shifting," she told the Los Angeles Times.

ESPN's operating income slipped three percent to $2.2 billion.

The broadcaster put the dip down to higher programming costs and subscriber losses during a turbulent period for the television business.

ESPN has lost around 10 million subscribers since 2010, according to Nielsen data.

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While the TV network struggled Disney's film unit had a strong quarter on the back of the success of Rogue One: A Star Wars Story and Beauty and the Beast, which both grossed more than $1 billion worldwide.

Disney's film studio reported operating income of $656 million, a 21 percent increase year-on-year.

Disney's theme parks also had a strong quarter with operating income up 20% to $750 million.

Los Angeles Times

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