Disney Admits Star Wars: The Mandalorian and Grogu Falls Short at Box Office
Disney's recent Star Wars film, The Mandalorian and Grogu, failed to meet expectations at the box office. On an earnings call, CEO Josh D'Amaro acknowledged that the movie underperformed, but pointed out that it drove revenue in other areas of the company.
The film, which had a production cost estimated at $165 million plus marketing, grossed $345 million globally. This likely resulted in a substantial shortfall for the studio when looking at things strictly from the perspective of cost vs. ticket sales. D'Amaro emphasized that even though the movie didn't meet box office expectations, it contributed to value creation beyond its theatrical release.
The company's diversified business helped cover the volatility of the film industry, according to CFO Hugh Johnston. He noted that the nature of the film industry is a 'portfolio game,' where performance can vary widely from one title to another. Disney's other revenue drivers, such as toy sales and attendance at Star Wars rides in theme parks, also saw growth.