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Walt Disney to lose millions on Lone Ranger film | Walt Disney to lose millions on Lone Ranger film |
(about 2 hours later) | |
Walt Disney has warned that its Lone Ranger summer blockbuster will lose it between $160m-$190m (£104m-£124m) after heavy spending on promotion failed to bring returns. | Walt Disney has warned that its Lone Ranger summer blockbuster will lose it between $160m-$190m (£104m-£124m) after heavy spending on promotion failed to bring returns. |
The news came with the entertainment giant's third quarter results. | The news came with the entertainment giant's third quarter results. |
They showed earnings almost unchanged but revenue up 4%, thanks to its theme parks and cable networks, such as ESPN. | They showed earnings almost unchanged but revenue up 4%, thanks to its theme parks and cable networks, such as ESPN. |
Disney said it earned $1.85bn in the quarter to the end of June, up from $1.83bn last year. | Disney said it earned $1.85bn in the quarter to the end of June, up from $1.83bn last year. |
Revenue at its theme parks and resorts grew by 7% to $3.7bn while cable network revenue was up by 8%. | Revenue at its theme parks and resorts grew by 7% to $3.7bn while cable network revenue was up by 8%. |
The parks in California and Florida attracted more visitors, and operating income for that division outstripped that of the resorts, rising by 9% to $689m. | |
ESPN is facing new competition from 21st Century Fox's Fox Sports 1, which is launching this month. | |
Disney's chairman and chief executive, Bob Iger, said the new competitor had not harmed advertising sales at ESPN. | |
Fox news and entertainment was recently spun off from News Corporation, which retains its businesses of newspapers and publishing. | |
Risks | |
The losses from the Lone Ranger film, which stars Johnny Depp, will show up in the next quarterly figures. | The losses from the Lone Ranger film, which stars Johnny Depp, will show up in the next quarterly figures. |
The film had its premier in early July and made $29m in US and Canadian ticket sales over its first weekend, a figure considered weak in the industry for a major release. | |
It opens in the UK this weekend. | |
Disney said Iron Man 3, which was released in late spring, had fared worse than The Avengers which was out a year earlier, but that its Pixar movie Monsters University was doing better than its children's film Brave did a year ago. | |
Mr Iger said he was happy with the results, adding: "We are confident that our strategy of creating high-quality branded content positions us well for the future." | |
He said he appreciated the risks associated with high-cost films, but that he still thought they were worth the risk. | He said he appreciated the risks associated with high-cost films, but that he still thought they were worth the risk. |
"One way to rise above the din and the competition is with a big film, not just big budget, but big story, big cast, big marketing behind it," he said. | "One way to rise above the din and the competition is with a big film, not just big budget, but big story, big cast, big marketing behind it," he said. |