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Disney Interactive suffers increasing losses

Disney attributes mixed third fiscal quarter results to acquisition of Playdom

The DIsney Interactive Media Group has posted a net loss of $86 million in its fiscal third quarter results.

The figure represents a year-on-year drop of 32 per cent from $65 million, despite the fact that revenue actually increased by 27 per cent - from $197 million to $251 million - over the same period.

"lower operating results were driven by the acquisition of Playdom, including $21 million in purchase accounting adjustments," said Disney CEO Robert Iger in an earnings call.

"Results at our console games business improved during the quarter due to higher unit sales and lower marketing expense, partially offset by the higher cost of sales reflecting fees paid for the developer of LEGO Pirates of the Caribbean."

Disney's Interactive division also reported losses in the second quarter, and in the time since has closed Black Rock Studios and laid off 30 people at social developer Three Melons.

Overall, The Walt Disney Company posted revenue of $10.6 billion, a 7 per cent increase year-on-year, and net profit of $1.47 billion, an increase of 11 per cent.

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Matthew Handrahan


Matthew Handrahan joined GamesIndustry in 2011, bringing long-form feature-writing experience to the team as well as a deep understanding of the video game development business. He previously spent more than five years at award-winning magazine gamesTM.