Disney profit beats forecast despite studio decline
LOS ANGELES (REUTERS) - Walt Disney Co posted a slightly higher quarterly profit that beat Wall Street expectations, even though its movie studio earnings declined as hit film Iron Man 3 failed to match the spectacular success of last year's The Avengers.
Pre-release marketing costs for box office bomb The Lone Ranger helped drag down operating income at the studio division by 36 per cent from a year earlier, Disney said on Tuesday.
Disney expects a loss of US$160 million to $190 million (S$203 million to S$241 million) in the quarter that ends in September for the Johnny Depp movie, chief financial officer Jay Rasulo said.
Disney shares fell 1.5 per cent to US$66.06 in after-hours trading, from their US$67.05 close on the New York Stock Exchange.