aug 6, 2013 - VARIETY The Lone Ranger Could Cost Disney $190 million in Losses

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The Walt Disney Co. posted quarterly earnings of $1.03 per share after certain items on revenue of $11.6 billion, but the film studio suffered under the weight of marketing expenses for The Lone Ranger, a bomb that could ultimately cost the entertainment conglomerate $190 million.

The company had been expected to earn $1.01 per share on revenue of $11.64 billion, and a year ago in the same quarter the conglomerate earned $1.01 per share on $11.1 billion revenue.

The studio entertainment unit saw revenue decrease 2 percent to $1.6 billion and operating income drop 36 percent to $201 million due in part to marketing costs for The Lone Ranger. That film, which cost $250 million and has generated $175.6 million at the worldwide box office, is expected to dent Disney’s earnings in the current quarter, as well. During a conference call with analysts, Disney said it expects to take a loss of $160 million-$190 million due to The Lone Ranger, including about an $86 million impairment charge.

Helping Disney offset the marketing costs associated with The Lone Ranger were strong performances from ESPN and Monsters University, which outperformed Brave a year ago.

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