Disney has announced its full-year annual profit dropped 25 per cent in FY2009 – down to $3.3 billion.
Full year revenues dipped four per cent to $36.1 billion the 12 months to October 3rd, down from $4.42 billion in fiscal 2008.
The Interactive Media segment of the business – which includes Disney Online and Disney Interactive Studios – saw year-on-year revenues decrease by one per cent. However, annual losses stood at $295 million. It was Disney’s only division not to make a profit.
Outgoing CFO Tom Staggs explained the underlying reason for the division’s loss during the company’s earnings call.
He said: “We’re making an investment [in self-published games]. We’re currently in a loss situation and would like to see that reverse itself as we build out to scale.”
Disney Online saw improved results thanks to lower marketing costs and higher subscription numbers from Club Penguin - but DIS suffered a fall in unit sales, lower licensing revenue and higher unit costs for games.
Titles released in the period included High School Musical 3 and Sing It, compared to the previous year's line-up for High School Musical, Turok and Pure.
Disney’s overall fiscal fourth-quarter earnings beat analysts' expectations.
The company saw net income rise 18 per cent to $895 million in the three months to October 3rd, compared to net income of $760 million one year ago.
Revenue during the quarter rose four per cent to $9.87 billion, compared to revenue of $9.45 billion a year previous.