Toy Story Drives Disney’s Interactive Revs Up; Segment’s Losses Narrow


Credit: Disney

A mix of cheaper video games and higher subscription dollars at its kid-focused virtual world Club Penguin helped drive the Walt Disney (NYSE: DIS) Company’s interactive revenues up 20 percent in Q3. For the year, interactive’s revenues were up a decent 7 percent. That helped pare the segment’s losses down considerably. For the quarter, interactive’s losses came in at $104 million, versus $114 the year before. For the full year, the digital unit lost $234 million from $295 million previously.

Specially, Disney said lower pricing on self-published video games driven by Toy Story 3, and increased subscribers at its mobile phone service business in Japan also helped boost revenues.

The cable and broadcast networks were able to ride the wave of this past year’s ad spending recovery, though only slightly. The cable business, which includes ESPN and international cable channels, were hit with decreases in equity income of $58 million charge for Disney’s share of programming writeoffs at A&E/Lifetime.

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