Disney banks on Star Wars for growth

Walt Disney has announced plans for another Star Wars series, as the firm struggles to boost revenue in its movie business.

The media company released earnings on Tuesday that showed revenue from its movie division dipped 1% in the fourth quarter, weighing on overall results.

Total quarterly revenues increased just 4% year-on-year, but profits surged thanks to US tax cuts.

Disney recorded a $1.6bn (£1.1bn) one off benefit from the cuts.

That helped to drive the firm's fourth quarter profits up 78% to $4.4bn (£3.15bn).

Total revenue in the quarter was $15.3bn, with only the theme parks division reporting growth.

Disney is working to overhaul its business, as it faces declining pay-TV subscriptions in the US.

Last year, it announced a deal to purchase the media assets owned by 21st Century Fox, including Sky. That deal is going through regulatory review.

It is also launching its own streaming services and trying to maximise the success of its Star Wars franchise.

On Tuesday, the company announced it had signed the creators of Game of Thrones to create another Star Wars series and said it plans to make its ESPN app available for $4.99 a month.

Last quarter, the firm announced another trilogy from director Rian Johnson. It is also planning "several" television shows based on Star Wars stories.

Disney shares increased by more than 2% in after-hours trade.