Details On Disney’s Financial Results Including Consumer Products & Infinity

This past week, the Disney company released its quarterly financial results and from that, we can see a few interesting facts from about how this has effected the Disney collectibles side of the business.

First off, according to the results, we can see that its been a very good year for the Consumer side of the business.

Here is the official word from Disney about their Consumer Products Section:

Consumer Products revenues for the quarter increased 22% to $1.4 billion and segment operating income increased 46% to $626 million. Higher operating income was due to increases at our Merchandise Licensing and Retail businesses.

The increase in operating income at Merchandise Licensing was due to the performance of merchandise based on Frozen and, to a lesser extent, Disney Channel properties, Mickey and Minnie, Spider-Man and Avengers.

At our Retail business, higher operating income for the quarter was due to comparable store sales growth and higher online sales in all regions driven by sales of Frozen merchandise.

From this, we can see that in general, its been a very good year for Disney’s Merchandise division, with Frozen Fever in full swing and the added benefit of the Marvel universe, Disney have done very well.

With regards to Disney Infinity, here are the official details about their Interactive Division:

Interactive revenues for the quarter decreased by $19 million to $384 million and segment operating income increased by $20 million to $75 million. Improved operating results were due to an increase at our mobile games business driven by the success of Tsum Tsum and Frozen Free Fall as well as lower product development costs due to fewer titles in development. This increase was partially offset by lower results at our console games business reflecting higher per unit costs driven by the mix of Disney Infinity products sold, lower unit sales and higher marketing costs. The decrease in unit sales was driven by lower sales of Infinity accessories and catalog titles, partially offset by higher sales of Infinity starter packs.

Going off of this information, we can see that Disney Infinity 2.0 had a increase in sales of Starter Packs (which makes sense with having 2 different versions this year), but it had sold less accessories, which Power Discs and Figures would count as, since the “accessories” like the albums are sold by another company, PDP.  Disney has had to spend more money on advertising due to the increase competition from Skylanders and Nintendo’s Amiibo.  Disney has shown there is potential to grow Infinity further, if they can get the attachment rate higher from those with the Starter Pack to purchase more accessories.  This could have been a direct response of fans not having as many play sets or having a reduced number of Disney themed characters.  However its worth noting that Infinity 2.0 would still be considered a huge success when comparing the Interactive division to a few years ago when they made huge loses.  And overall, the Interactive division has made a profit but compared to other areas within the company as a whole, it is hard to work out the exact sales data with regards to Infinity.

Overall, Disney reported that its total revenue rose 9% in the quarter to $13.39 billion and net income grew 19% to $2.18 billion.

You can read the whole report, by clicking here