The acquisition of 21st Century Fox in December 2017 for 71 billion had a negative impact twice as large as expected on earnings per share, due to the Asian movie studio and sports channel Star.
Alone, the studio lost 170 million in the third quarter due to the failure of "X-Men: Black Phoenix", the latest adventure in the "X-Men" saga on Fox.
The last three months of exercise should also be affected.
In a conference call with financial analysts, group CEO Bob Iger acknowledged that Fox Studio's performance was "well below what it had in the past and far below what we expected when we made the acquisition."
For him, the long period between the announcement of the acquisition and final integration in the second quarter of 2019 played a key role "in an activity that requires decisions and a constant attention to detail".
"I am confident that we will be able to reverse the situation […] and see results in two years, "he promised.
High bet at Disney +
Disney is set to launch Disney + on November 12, its streaming platform that is expected to compete directly with industry giant Netflix. The group bets high on the success that will bring together the entire family catalog of the company's enchanted kingdom.
The offer to a more mature audience will be through the Hulu broadcast platform, of which Disney owns 60% and has taken operational control.
"Disney + will be the exclusive streaming service for our extensive movie and TV series video library, all National Geographic content, all upcoming Disney, Pixar, Marvel and Star Wars movies and a host of original shows. quality, "said Iger.
The promotion of the new platform will start now in August. To make it more attractive, Iger has announced that the group will propose a combination Disney +, ESPN [desporto] and Hulu for $ 12.99 a month. Disney + alone will cost $ 6.99, while Netflix has plans between $ 9 and $ 16.
Anticipating better times, the Disney CEO mentioned the "blockbusters" that can be seen exclusively at Disney +: "Avengers: Endgame", "Toy Story 4", "Aladdin", "The Lion King" or "Captain Marvel".
Since the beginning of the year, Disney Studios has earned $ 8 billion, "a record for the industry," said Iger.
According to him, by the end of the year Disney will release titles that should bring crowds to theaters, such as "Frozen 2" and "Star Wars: The Rise of Skywalker."
In the third quarter, Disney movie studios had a turnover of $ 3.8 billion, a 33% increase, and an operating profit of $ 792 million, a growth of 13%.
Recent sometimes violent demonstrations in Hong Kong also affect the frequency of Disney Park, Iger acknowledged.
"You will feel the effects of this [das manifestações] in the current quarter results […] they caused disturbances that reduced the number of visitors, "he explained, adding, however, that Shanghai's Disney Park was no more affected by this than by current trade tensions between Beijing and Washington.