Shares of Disney drop after it lowers cable network outlook

Los Angeles

WALT Disney Co lowered profit guidance for its cable networks unit and reported quarterly revenue slightly below Wall Street forecasts, sending its shares down 6 per cent on Tuesday.

The media company now expects annual operating income growth at the unit in the mid-single digits for fiscal years 2013 to 2016, chief financial officer Christine McCarthy said on a conference call. It previously had forecast growth in the high single digits.

The company cut its forecast because it expects lower revenue from a decline in subscribers and the impact of foreign exchange rates, Mr McCarthy said. Sports network ESPN has experienced "modest" subscriber losses as viewing habits have shifted to digital platform…