This is a battle John Carter was never going to win.
Disney announced late on Monday that it was expecting to book losses of $200 million on the movie, making the space alien flick one of Hollywood’s biggest money-losers ever.
Although expectations that the movie would prove to be huge money-losing venture have long been held by analysts, the Disney’s expected losses are even higher than those previously projected.
The movie, about a Civil War-era soldier who finds himself on planet Mars fighting space aliens, opened to $30 million in its first weekend. But with a production budget of $275 million and marketing expenses totaling $100 million, big losses were to be expected.
In Disney’s second fiscal quarter — ending in March — its studio segment will reportedly post a loss of $80 million to $120 million. During the same quarter a year ago, Disney reported an operating profit of $77 million.
The Associated Press reported that even though Disney had gone on to earn $184 million in ticket sales, these had to be split in half with theater owners.
John Carter is based on a series of books written by the late Edgar Rice Burroughs, including A Princess of Mars and John Carter of Mars. The 3D effects-rich movie was directed by Pixar’s Andrew Stanton.
Last year, Mars Needs Moms cost Disney $150 million to make but sold only $40 million in tickets, Hollywood.com analyst Paul Dergarabedian said. In 2008, Warner Bros. (NYSE:TWX) spent $120 million on Speed Racer, earning only about $94 million. The 1987 movie Ishtar cost Columbia Pictures about $40 million but sold only $14 million in tickets.
Miller Tabak analyst David Joyce told AP that the projected losses will result is a revision of the estimate of Disney’s earnings. “It’s good that Disney’s airing their dirty laundry now,” he said.
Disney expressed confidence in the studio’s forthcoming releases. “As we look forward to the second half of the year, we are excited about the upcoming releases of The Avengers and Brave, which we believe have tremendous potential to drive value for the studio and the rest of the company,” the statement read.