 Films like The Great Raid have failed to spark a box office revival |
Walt Disney has warned its film studios will make a loss of as much as $300m (�166m) in the current quarter as ticket sales fall and costs rise. Sales are "considerably worse" than expected after releases including The Great Raid disappointed, Disney said.
The entertainment group will now focus on cost controls to offset waning demand and bigger marketing budgets.
Disney also warned it may have to write off $100m in aircraft leases after Delta Airlines filed for bankruptcy.
Park and ride
The current quarter covers the three months up until the end of September and is the fiscal fourth quarter of the company - which also runs theme parks, TV stations and produces cartoons.
Chief financial officer Tom Staggs remained upbeat about Disney's prospects for the full-year and said the company was on target to meet its forecast of double-digit earnings growth.
The market is estimating an increase in profits of close to 20%.
Better than expected theme park bookings and a pick up in advertising revenues at its cable television operations have helped drive growth at the group.
Analysts said they had expected problems at Disney's movie division after the company took control of Miramax and had to pay for the release of a large number of films.
One-Minute World News 
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