Disney could lose $200 million because of their latest film ‘John Carter’

John Carter Movie Poster

John Carter, the latest Disney film starring Taylor Kitsch and Lynn Collins did not do well on the box office and the Walt Disney company is currently expecting an operating loss of $80 million to $120 million but this mega-budget sci-fi film could generate an operating loss of about $200 million during the quarter ending March 31. The film has generated $184 million in ticket sales, around the globe. The film is not doing well because of many reasons which we won’t get into but one of them is, release of other films that have beaten John Carter, like The Lorax and 21 Jump Street. Analysts have largely disregarded the earnings impact of a big loss on “John Carter” given Disney’s size and its other sources of revenue like cable broadcasting, which are a bigger part of its business.

What is Operating Loss?

Loss resulting from a firm’s primary business operations, excluding extraordinary or peripheral income (such as interest earned) and expenses (such as interest paid).

Formula: (Cost of sales + Operating expenses) – Sales revenue.

Source: Reuters | Wall Street Journal

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