On Tuesday, Walt Disney Co said it expects to record a loss for its summer movie, 'The Lone Ranger'. The media giant stated that between US$160 million and US$190 million would be lost. The movie earned only US$29 million in US and Canada over its first weekend since it was released last July 3.
Johnny Depp was the lead role in 'The Lone Ranger'. Jay Rasulo, Disney's Chief Financial Officer, said the loss would be recorded for the quartile that concludes in September.
"There has been a lot said, I know, about the risk of basically high cost, tent pole films, and we certainly can attest to that given what happened with Lone Ranger," Bob Iger, Disney's CEO, stated. "We still think the tentpole strategy is a good strategy. That one way to rise above the din and the competition is with a big film, not just big budget, but big story, big cast, big marketing behind it."
Overall, the company's net income rose by 1% to US$1.85 billion during the second quarter. Its adjusted earnings from each share increased to US$1.03, beating the average projections from analysts of US$1.01.
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