The Disney Interactive Media Group has pinpointed their videogames business as the lead cause for operating losses, despite higher sales.
Greater marketing expenses and an increase in unit cost scuppered the efforts of Disney Interactive Studios. They incurred a loss of $45 million in their first fiscal quarter.
Beginning October and ending December, the division pulled $313 million in through sales throughout the quarter - a 13% year-on-year increase. Unfortunately though rising business expenses more than ate through their positive efforts.
”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.”
Walt Disney’s overall revenue fell 8% for their first fiscal quarter to $9.6 billion, with net income declining 32% to $845 million. Quick - everyone pile into Disney land!
Source: Edge Online
