Disney Q2 Revenue Decreases Significantly
May 7, 2009 at 11:46 am by srfto
Media giant and global phenomenon Disney Interactive Media has reported a 17 percent drop in revenue during the second quarter of 2009 to a figure close to $129. Operating losses however are unchanged from 2008.
The Media group consists of two main parts. It owns Turok developer Propaganda and massive video game related studios like Junction Point. They’re also responsible for publishing the vast majority of computer and console games Disney release each year.
They also operate major online gaming titles such as Toontown and the hugely popular Club Penguin who saw their quarterly losses increase by only 2 percent from $60 million up to $61 million.
This large drop in revenue for the quarter that ends on March 31st was attributed to somewhat unusual lack of console game releases such as Turok which was release in quarter one last year.
Disney Interactive Media are said to have weathered and got through this difficult time due to lower admin and marketing expenditure as well as an improvement from their Japanese mobile service endeavours.
The performance of Interactive Media was a stark difference to Disney overall, who reported quarterly revenue decrease of only 7 percent to $8 billion. Their net income has fell around 50 percent from £1.3 billion down to $613 million. Times are indeed hard.
Disney’s CEO and President Bob Igger has described these times as difficult, pinning the blame firmly on the poor state of the global economy by stating that the income decrease was partly due to company restructuring in the face of the current economic situation.
Despite these decreases the company has performed better than market expectations. Igger said “”We remain focused on our core business strategy and believe our creativity, brands and businesses will serve us well as the economy recovers,”