Disney Q4 Licensing Income Declines on Lower Star Wars, Cars Product Sales
Operating income at Disney’s Consumer Products and Interactive Media division fell 10% to $337 million in Q4 ended Sept. 30, due partly to a decline in licensing income tied to decreased sales of Star Wars- and Cars-related products and “lower minimum guarantee shortfall recognition.” The decreased revenue was partly offset by increased sales of Spider-Man related products.
Overall, Disney’s net income grew 33% to $2.3 billion on a 12% gain in revenue to $14.3 billion. Studio Entertainment income more than doubled to $596 million from $218 million as revenue jumped 50% to $2.2 billion on strong box office revenue from Incredibles 2 and Ant Man and the Wasp.
Meanwhile, Disney has named its new streaming service that is due in late 2019, Disney Plus. The new service will launch with a Star Wars Rogue One prequel series that will star Diego Luna, who appeared in the 2016 film of the same name.