Disney's Interactive Media Division Losses Shrink 21% For Fiscal 2010

The Walt Disney Co.'s Interactive Media Division reported a reduced loss of $234 million for the fiscal year that ended October 2, a figure 21 percent smaller than that for the previous year. Revenues for the fiscal year were up seven percent to $761 million for the fiscal year, thanks in part to increased revenues from subscriptions to the company's Club Penguin online game service and the sales success of games associated with the release of Toy Story 3. Lower costs also played a role in the improved results, according to an earnings report released by the company today, as the division shifted away from games with bundled accessories in fiscal 2009 to a focus on catalog titles in fiscal 2010. Disney's July purchase of social game developer Playdom for up to $763.2 million was partially included in the fourth quarter results for the concluded fiscal year. Despite this, the division only showed a $104 million loss for the quarter, a nine percent year-over-year improvement, on quarterly revenues of $188 million, up 20 percent from 2009. In August, Disney announced a record high of nearly 36 million visitors to its Disney.com online portal, thanks primarily to the success of online games like Club Penguin and Toontown Online, as well as mobile gaming apps. The company as a whole saw revenues increase five percent to $38 billion for the fiscal year, with net income up 20 percent to nearly $4 billion for the year.