Aug 08, 2019

Despite blockbusters, Disney profits plunge

Walt Disney's latest profit has failed to impress Wall Street, despite producing blockbuster movie hits including Avengers: Endgame and Toy Story 4.

Disney's shares fell 5% in after-hours trading when the firm posted figures that missed analysts' forecasts.

Profits at the entertainment giant fell 51% to $1.4bn in the last three months, despite revenues rising 33% to $20.2bn.

Avengers has become the biggest grossing movie ever, beating Avatar.

But profits from a string of movie hits, including Aladdin, failed to offset other costs at the company.

In March, Disney bought the TV and film assets of 21st Century Fox for $71bn.

Disney chairman and chief executive Robert Iger said the third quarter results "reflect our efforts to effectively integrate the 21st Century Fox".

 (BBC News)