Disney’s mobile games contribute to better bottom line — even as revenue drops

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Disney announced today that profits for its game division rose, even as revenue fell, because of strong performance of a couple of its mobile games.

Disney’s Tsum Tsum and Frozen Free Fall saw strong downloads and revenues for the first fiscal quarter ended Dec. 27. Game revenues in the quarter were $384 million, down $19 million from a year ago. And game operating profits were $75 million, up $20 million from a year ago.

But Disney said the increase in mobile was offset partially by lower results in the console games business. That reflects 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.