AKIPRESS.COM - Walt Disney has announced a deal to make three new Star Wars movies.

The company said it had struck a deal with Rian Johnson, director of the upcoming "Star Wars: The Last Jedi", to create a new trilogy of the science fiction blockbuster, BBC reported.

Disney is also working on a live-action Star Wars series for a new online streaming service.

The news overshadowed Disney's first drop in annual profits since 2009, amid steep competition from online rivals.

Profits for the year to September fell 4% to $8.98bn (£6.8bn).

Disney's shares fell initially in after-hours trading on the release of its results, but they then rallied to 1% higher on news of the new Star Wars movies.

Chief executive Bob Iger said: "We remain optimistic about our future, in part because quality truly does matter."

The entertainment giant also plans to launch a sports-focused ESPN+ app in the spring, and a Disney streaming service in 2019.

Mr Iger said those investments, which add to an existing Disney subscription service in Europe, were "vital" to the firm's future.

"Our goal here is to be a viable player in the direct-to-consumer space, a space that we all know is a very compelling space to be in," he said.

He declined to address reports that the company had held talks with 21st Century Fox about acquiring parts of its business, but he did not rule out an acquisition.

"I don't think there's ever such a thing as having too much quality."