Disney said it will release no more than three Marvel movies and up to two Disney+ shows each year as it focuses on “quality” following criticism that the company has been cranking out too many mediocre superhero flicks.
The Mouse House said Tuesday its Disney+ and Hulu streaming platforms squeezed out their first-ever quarterly operating profit of $47 million.
Nevertheless, the company gave a disappointing outlook for its theme parks business, sending its shares tumbling more than 10% in midday trades.
Disney CEO Bob Iger — who fended off a proxy contest from billionaire investor Nelson Peltz barely a month ago — told analysts that just one Marvel film will be released this year, “Deadpool and Wolverine,” starring Ryan Reynolds and Hugh Jackman, slated for a July 26 debut.
The next Marvel flick, a Captain America sequel, won’t be released until February 2025, Iger said. The third Marvel movie, “Thunderbolts,” which is focused on Captain America sidekick Bucky Barnes, is scheduled for May 2025.
The media giant will also produce Marvel films and shows for Disney+, including content related to “Black Panther” and “Spider Man.” No release dates have been made public yet.
“I’ve been working hard with the studio to reduce output and focus more on quality,” Iger said on the call. “That’s particularly true with Marvel … Some of what is coming up is a vestige of basically a desire in the past (to) increase volume.
“We’re slowly going to decrease volume and go to probably about two TV series a year instead of what had become four and reduce our film output from maybe four a year to two, to the maximum three, and we’re working hard on what that path is.”
Disney reported a 1.4% increase in first quarter revenue to $22.08 billion. Excluding items, earnings per share totaled $1.21 cents from 93 cents, a year ago. Wall Street expected revenue of $20.53 billion and EPS of $1.02.
The company’s streaming operation, which includes Disney+, ESPN+ and Hulu, inched closer to the goal of profitability. The unit posted an $18 million loss, weighed down by a $65 million loss from ESPN+.
On the positive side, Disney noted that Disney+ and Hulu turned in a combined operating income of $47 million. The company now expects the unit to be profitable by its fiscal fourth quarter ending Sept. 30.
But Disney also warned it expects flat operating profits in the current quarter for its Experience segment, which mainly consists of theme parks. Wall Street had expected a 12% increase.
