Disney Q3 shows increased revenue but greater losses

Disney Interactive has posted a loss of $86 million for the quarter ending July 2 despite noting an improvement in its console business.

The losses come in defiance of a 27 percent increase in revenue to $251 million.

Disney once again blamed the lack of profits on the $600 million acquisition of Playdom, citing ongoing accounting costs, but said relief on the console side helped.

"The improvement at our console games business reflected higher unit sales and lower marketing costs. The increase in unit sales was driven by the performance of Lego Pirates Of The Caribbean and Cars 2 in the current quarter compared to Toy Story 3 and Split Second in the prior year."

Fees paid to Lego Pirates of the Carribean developer Traveller's Tales were said to have "partially offset" profits.

Disney as a whole had a better result than the Interactive division, noting increases in both revenue and profit. The Interactive division also posted a loss in its second quarter.

Thanks, Edge.