Disney shares tumbled 5 percent in after-market trading Tuesday as the Mouse House missed Wall Street’s third-quarter profit and revenue expectations.
Chief Executive Bob Iger said the company’s results were weighed down by its merger with Twenty-First Century Fox, despite the fact that the Disney has earned a whopping $8 billion at the box office so far this year.
“Our third-quarter results reflect our efforts to effectively integrate the Twenty-First Century Fox assets to enhance and advance our strategic transformation,” Iger said, adding that costs associated with its upcoming streaming service Disney+ also pulled down results.
Disney acquired the entertainment assets of Fox for $71.3 billion earlier this year, a move that gives it a trove of content for Disney+, which launches in November for $6.99 a month.
Iger noted that his firm produced five of the six global top-grossing movies this year.
Earnings fell 28 percent, to $1.35 a share, while revenue rose 33 percent, to $20.3 billion. Analysts expected $1.75 a share on revenue of $21.5 billion.
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