Disney reported earnings that beat Wall Street forecasts on Tuesday amid strength at ESPN and its domestic theme parks but a poor performance at its movie business weighed on revenue.
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The company's studio business posted a 2-percent decline in revenue in the quarter and a 36 percent-decline in operating income due to the pre-theatrical release marketing costs for "The Lone Ranger."
Disney also expects to take a loss of between $160 million and $190 million for "The Lone Ranger" in the fiscal fourth quarter. While large, that's still lower than the $200 million writedown Disney took on "John Carter" last year.
During the third quarter, the performance of "Iron Man 3" also wasn't as strong as "The Avengers" last year.
Disney's media networks fared better, with revenue rising 5 percent due to growth at ESPN. Operating income at the networks rose 8 percent in the quarter. Higher operating income at ESPN was due to increased affiliate revenues and, to a lesser extent, higher advertising revenues.