Posted July 22, 2018 07:04:53The Walt Disney Interactive Media (WDI) Interactive Entertainment unit, which was spun off in April after the sale of its film and television studios to Time Warner, announced it had lost $3.6 billion in revenue in the three months ended July.
The unit’s net loss for the quarter was $1.6 million, compared to a $1 million loss a year earlier.
The unit had $1 billion in annual revenues, but lost $2.2 billion, according to its quarterly results.
Disney CEO Bob Iger, in a statement, said the company’s focus was on growing its entertainment business, including its interactive media business, and that its focus was “to focus on innovation and development for our players and consumers.”
Iger also said the unit would invest $250 million to increase the value of its stock.
The Disney unit has a market value of about $1 trillion.
The company has been under intense scrutiny since the December 2016 election when President Donald Trump was elected.
The Disney unit, founded in 1986, was the first studio to be spun off from Disney after it was sold to Time, which is owned by 21st Century Fox.
Disney, which had been owned by Iger since 2015, has been losing money ever since.
In its latest quarterly results, Disney reported a net loss of $3,621 million, down from $3 million a year ago.
The film and TV studios that are part of the unit have been shedding jobs at a record pace.
The Walt Digital Group, a unit of Walt Disney Television, had a net gain of $1,097 million, or 11 percent.
The television division, which includes Disney XD, was down 11 percent, while Disney-owned ESPN was down 21 percent.
The news comes on the heels of news that Disney is going to sell the studio that it owns the most of to Netflix for $3 to $4 billion, bringing its total value to about $40 billion.
The studio is a joint venture between Walt Disney and Netflix.