Operating income for Consumer Products & Interactive Media arm edges up 3%.
The second quarter has proved to be something of a mixed bag at The Walt Disney Company – with the Consumer Products & Interactive Media arm suffering from lower revenue from products based on Star Wars and Frozen.
Revenues for the quarter ending April 1, 2017 for the Consumer Products & Interactive Media segment were down 11% to $1.1 billion. However, segment operating income was up 3% to $367 million.
The higher operating income was due to an improvement in the games business, driven by a favourable impact from the discontinuation of the Infinity console in the prior year quarter.
However, this benefit was largely offset by lower licensing results – mostly attributed to lower revenue from products based on Star Wars and Frozen, both of which were strong in the prior year quarter – and a decline at the retail business.
Sales of Moana merchandise in the current quarter, however, did fill some of the gap.
Elsewhere, Parks & Resorts revenues for the quarter increased 9% to $4.3 billion and segment operating income was up 20% – this was mostly thanks to the opening of Shanghai Disney Resort and an increase at Disney’s domestic parts and resorts.
Studio Entertainment revenues decreased 1% to $2.0 billion, although segment operating income was up 21% to $656 million, with an increase in home entertainment results partly attributing to this.
The strong performance of Beauty and the Beast helped the theatrical distribution results.
Overall, The Walt Disney Company saw revenues rise 2.8% from last year to $13.34 billion.
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