The Walt Disney Company has reported strong results for its third quarter - with the consumer products division putting in a solid performance.
The division's revenues for the quarter increased 23 per cent to $549 million, while segment operating income increased 12 per cent to $118 million. This was mainly driven by increased unit volumes at Disney Interactive Studios, higher earned revenues at merchandise licensing and by Disney Store North America licence royalties, which began in the first quarter of fiscal 2007.
These gains were partially offset by a higher revenue share with the Studio Entertainment segment, increased marketing and video game development costs at DIS, plus higher operating costs at merchandise licensing.
Cars and Pirates of the Caribbean continued to be the big success stories for the company.
Meanwhile, the firm also revealed it has purchased kids' virtual world Club Penguin for $350 million in cash, plus up to $350 million more depending on the website's earnings in 2008 and 2009.
The Club allows children to control, dress and communicate through animated penguin avatars which live in an icy virtual world. Disney chief executive Robert Iger expects the Club to begin contributing to the company's bottom line in its first year.