The segment, which includes Disney Interactive Studios, Disney Online and mobile operations, generated $313 million in sales for the October-December quarter, an increase of 13 percent year-on-year. Operating loss was $45 million, down from operating income of $13 million a year ago.
The company attributed the interactive media group's operating loss to Disney Interactive Studios, whose higher sales volume was more than offset by an increase in unit cost of sales and higher marketing expenses during the quarter.
Overall, Walt Disney Co.'s revenues were down 8 percent for the quarter to $9.6 billion, while net income fell 32 percent to $845 million.
“We faced a challenging first quarter with many of our businesses impacted to various degrees by the economic downturn,” said Robert A. Iger, Disney president and CEO. “We are forcefully confronting current circumstance while investing in the great creativity, brands and assets that are Disney’s strengths and keys to its long-term success.”