Disney stung by 25% profit drop
Friday, 13th November 2009 at 12:57 pm
Interactive division’s net loss hits $295 million – but revenues hold firm
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.”
© Develop 2013. All rights reserved.