Disney Interactive reported its annual results for the fiscal year ending October 2 this week, with losses down 21% to $234 million. Revenue for the fiscal year was up 7% to $761 million. Disney credits the rise in revenue to increase subscription revenue from its Club Penguin virtual world and brisk sales of video games based on Toy Story 3. Cost reduction also played a part in the improved results. The company shifted away from retail titles packaged with accessories in fiscal 2009 toward a focus on catalog titles in fiscal 2010.
Disney’s $763.2 million purchase of social game developer Playdom was partially included in fourth quarter results for fiscal 2010. Despite the purchase of Playdom, Disney Interactive posted only a $104 million loss in the fourth quarter, which is down 9% from Q4 2009. Revenues for Q4 2010 were $188 million, up 20% from Q4 2009. In August, Disney said that it received a record high of 36 million visitors to its Disney.com portal. Disney attributes this to the success of Club Penguin, Toontown Online, and its mobile gaming apps.
Disney as a whole saw revenue up 5% to $38 billion for the fiscal year. Net income for the fiscal year was up 20% to $4 billion. Going forward, Disney intends to invest less in console games and more in what CEO Bob Iger calls a “multiplatform” strategy that includes mobile apps and social games. Iger cites this repositioning as part of the rationale behind naming former Playdom CEO John Pleasants head of the games-oriented half of the Disney Interactive group.
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