Disney Consumer Products Sales Decline
Disney Consumer Products and Interactive Media’s operating income declined 10% to $324 million in Q3 ended June 30 as revenue fell 8% to $1 billion amid a downturn in sales of Cars-related licensed products. The decrease in Cars was partly offset by strong sales of products tied the Avengers: Infinity Wars and Incredibles 2.
Overall, Disney’s Q3 net income rose 23% to $2.41 billion as revenue increased 7% to $15.2 billion on a 20% jump in studio entertainment to $2.87 billion. Studio entertainment, on the box office strength of Avengers: Infinity Wars ($2 billion in global box office revenue as of Aug. 5) and Incredibles 2 ($1 billion), posted an 11% gain in operating income to $708 million. The two films were up against Guardians of the Galaxy Vol. 2 ($722 million) and Cars 3 ($383 million), which were released a year ago.
Disney, Christine McCarthy, CFO, 818-560-1000, Christine.email@example.com