Disney off to a good start in Q1, says president

Consumer products operating income stood at $313m for the quarter.
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Robert Iger, the president and CEO of The Walt Disney Company, has said that the firm is off to a "good start" in this fiscal quarter, as it reported its first quarter earnings.

The company posted revenues of $10,779m for the quarter ending December 31st 2011.

In terms of the consumer products division, operating income stood at $313 million for the quarter (which was comparable to the prior year quarter), while revenues increased by three per cent to $948 million.

In its retail business, increased revenue was driven by new stores in North America and holiday season promotions. retail sales were driven by Cars and Tangled merchandise in the current quarter, compared to Toy Story in the prior year quarter.

The revenue increase at retail was largely offset by higher operating costs associated with increased volume.

In merchandise licensing, operating income for the quarter was comparable to the prior year quarter as the strength of Cars merchandise was largely offset by lower performance of Toy Story and Tangled merchandise.

In other divisions, interactive media revenues for the quarter decreased by 20 per cent to $279 million, while segment operating results decreased by $15 million to a loss of $28 million.

Studio Entertainment revenues decreased 16 per cent to $1.6 billion and segment operating income increased ten per cent to $413 million. Meanwhile, Parks and Resorts revenues increased ten per cent to $3.2 billion and segment operating was up 18 per cent to $553 million.

"We're off to a good start in this fiscal year executing on our ongoing strategy, deriving greater value from our brands - Disney, Pixar, Marvel, ESPN and ABC - in the US and around the globe," said Robert Iger. "We are confident that our commitment to creating and providing exceptional family entertainment on multiple platforms continues to position us to deliver long-term shareholder value."

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