Profits tumble at Disney despite box office hits

Disney: Avengers
Disney: Avengers

The company is gearing up to launch Netflix rival Disney+ in November.

Profits at The Walt Disney Company fell 51% to $1.4bn (£1.15bn) in the three months to 29 June, prompting a 5% fall in its share price after the results were announced.

The company, which saw revenues rise 33% to $20.2bn, missed analyst expectations despite a string of movie hits over the period including Aladdin and Avengers: Endgame, which surpassed $1bn in its opening weekend in April and has since become the biggest grossing movie ever.

Disney chairman and chief executive Bob Iger said the results reflected its efforts to "effectively integrate" TV and film assets purchased from 21st Century Fox in March for $71bn.

The company is also gearing up to launch its streaming service, Disney+, a rival to Netflix, in November – costs of which, according to the BBC, could weigh on company profits for several years.

It is expected to bundle Disney+ with its other streaming services Hulu and ESPN+ when it launches in the US in November for $12.99 a month. There is no UK launch confirmed yet.

Speaking on Tuesday, Iger said Disney+ would be "the most important product that the company has launched" in his two-decade tenure.

Earlier this week Campaign reported that Luke Bradley-Jones is set to join Disney after quitting as Sky CMO after Sky confirmed Bradley-Jones is leaving the Comcast-owned pay-TV firm, and multiple sources said he is heading to Disney for a senior role. Disney declined to comment.

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