The Walt Disney Company’s latest financial results for the last three months have seen a gigantic fall in profits of 51% to £1.15bn.
This is despite Disney seeing revenues rise 33% to £16.63bn.
The entertainment giant has had a stream of box office hits this year, including Avengers: Endgame (now the highest-grossing movie of all time), Aladdin, Spiderman: Far From Home and Toy Story 4 – but even this hasn’t stopped a 5% fall in shares on Wall Street today.
In March, Disney bought the TV and film assets of 21st Century Fox for £58.5bn, and this is seen as a massive growth area for the company over the next few years.
Despite the success the company has experienced at cinemas across the world this year, the profits made have failed to offset other costs across the business, most notably their upcoming streaming service which is due next year.
However, the company saw 4% rise in operating profits across its theme parks to £1.4bn, following the company’s ambitous Star Wars expansions.
Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company said: “Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation.
“I’d like to congratulate The Walt Disney Studios for reaching £6.6bn at the global box office so far this year–a new industry record–thanks to the stellar performance of our Marvel, Pixar and Disney films. The incredible popularity of Disney’s brands and franchises positions us well as we launch Disney+, and the addition of original and library content from Fox will only further strengthen our direct-to-consumer offerings.”