This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23598825
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Walt Disney to lose millions on Lone Ranger film | Walt Disney to lose millions on Lone Ranger film |
| (about 13 hours later) | |
| Walt Disney has warned that its Lone Ranger summer film 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. | 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. | 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. | 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. | Fox news and entertainment was recently spun off from News Corporation, which retains its businesses of newspapers and publishing. |
| Risks | 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 premiere 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. | 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. | 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." | 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. |