Disney Interactive losses widen
Disney’s game division posted an increased operating loss for its third fiscal quarter ended July 2, 2011, despite a jump in revenues. Operating results for the firm’s Interactive Media segment declined 32 per cent year-over-year to a loss of $86 million (£53.2m), while revenues for the quarter increased 27 per cent to $251 million (£155.3m). “Lower segment operating results were driven by the inclusion of Playdom, including the impact of acquisition accounting, partially offset by an improvement at our console game business,” Disney said. “The improvement at our console games business reflected higher unit sales and lower marketing costs. The increase in unit sales was driven by the performance of Lego Pirates Of The Caribbean and Cars 2 in the current quarter compared to Toy Story 3 and Split Second in the prior year. These increases were partially offset by higher cost of sales reflecting fees paid to the developer of Lego Pirates Of The Caribbean.” The news was brighter for the company as a whole, which saw quarterly profits up eleven per cent to $1.48 billion (£915.8m), and revenues up seven per cent to $10.7 billion (£6.6b).