Disney’s Rogue One Success Outweighs ESPN’s Woes

Disney’s Rogue One beat high expectations over the weekend, with sales of $155 million at the box office. Photo: Getty Images

Anyone can make a bundle by re-launching a famous movie franchise. Do it twice, though, and you’ll be rolling in the dough for years.

Analysts are excited that Rogue One: A Star Wars Story beat the already high expectations for the movie this weekend, raking in $155 million at the box office. That’s the second best December opening in history, after only The Force Awakens, last year’s Star Wars reboot. Analysts had been expecting the movie to make $130-$150 million.

The successful opening is particularly promising for Disney because Rogue One does not progress chronologically from The Force Awakens Instead, the story travels back in time to before the Death Star was destroyed. If Star War fans keep coming back for the sequels, prequels, and outtakes, the series could continue for years. Any moment in time is fair game.

The early Rogue One numbers, plus the fact that the movie got an 84% score on the Rotten Tomatoes review site, bolsters the long-term potential. JPMorgan analysts project that Rogue One could make $1.5 billion in global box office receipts.

Disney stock has had a mixed year, because investors are fixated on the struggles at Disney’s media network group, which includes ESPN. That division has been hurt as viewers cut their cable cords. But the success of Star Wars should soothe their worries – JPMorgan estimates that Rogue One will bring in $600 million in profits. By contrast, operating profits at the media network division fell by about $40 million this year.

Based on early box office receipts, the force continues to be with Disney.

Big Picture: The success of Rogue One at the box office should make Disney investors optimistic.

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