Disney Interactive Media has reported losses for both the fiscal quarter and half ending April 3rd this year.
While overall the Disney company enjoyed a climb in profits for the period, as revealed by its latest financial report, the division responsible for its games lost $55m in operating results for the quarter.
Despite the loss, the figure represents an approximate 10 per cent rise in contrast to the $61m loss of the same quarter the previous year. Disney’s Interactive Media revenues climbed 20 per cent to $155m.
According to a statement in Disney’s report: "Improved operating results reflected higher Club Penguin subscription revenues and lower video game inventory costs, partially offset by higher internet product development and sales and marketing costs."
Elsewhere, the company’s television, resort, movie and consumer product divisions enjoyed a climb in revenues, with the firm’s overall profit gain for the quarter up 55 per cent.
The incredible box office performance of Disney’s Alice in Wonderland and acquisition of Marvel, whose Iron Man 2 has grossed $334m in global box office in its first two weeks, clearly show the benefits of investing in high quality branded content,” said Disney’s Robert A. Iger, president and CEO, speaking of the overall success.
With the economy showing signs of improvement, we’re confident our strategy is the right one to provide consumers the best in entertainment while building long-term value for our shareholders.”