CALIFORNIA – MEDIA and entertainment giant Walt Disney warned today that its newest summer flick – Lone Ranger – will incur losses of $160 million to $190 million after huge promotional and operating spending failed to hit the company’s desired results.
The latest development was made public following Walt Disney’s third quarter report. The company bared earnings that were almost flat, but its revenues soared more than four percent courtesy of robust profits from its cable network business and theme parks.
According to Walt Disney, the company earned $1.86 billion in the quarter ending June, a decent increase from its last year’s $1.82 billion. Revenue from its resorts and theme parks rose by more than seven percent, while its cable television business increased by around eight percent.
Walt Disney’s operating income for theme parks in Florida as well as California beat the company’s overall income in its resorts, soaring by as much as nine percent to $689.1 million.
According to Bob Iger, chair and chief executive of Walt Disney, their new rival has not affected ESPN’s sales, especially in advertising.
Recently, Fox entertainment and news spun-off from media empire News Corp, which keeps its publishing and newspaper divisions.
Meanwhile, the company’s cable sports network ESPN has a new rival – Fox Sports 1, which is owned by 21st Century Fox. The network is set to launch anytime this month.