“We are pleased with our first quarter results and are excited about our creative pipeline, from upcoming movies like Alice in Wonderland and Toy Story 3 to new attractions at our Parks and Resorts,” said Robert A. Iger, President and CEO, The Walt Disney Company. “Our unique ability to deliver outstanding experiences to consumers across platforms, markets and businesses gives us a strong competitive advantage and positions us well for long-term growth.”

First quarter results for fiscal 2010 (Jan 2nd 2010 vs. 2009 (Dec 27th 2008) (in millions, except per share amounts):
Revenues were up: $9,739 vs $9,599 = 1 %

By: SEGMENT RESULTS

Media Networks $4,175 vs $3,903 7%
Parks and Resorts $2,662 vs $2,665 — %
Studio Entertainment $1,935 vs $1,945 (1)%
Consumer Products $746 vs $773 (3)%
Interactive Media $221 vs $313 (29)%

We have highlighted the key sectors for the licensing industry namely studio entertainment, consumer products and interactive.

Studio Entertainment

Studio Entertainment revenues for the quarter were essentially flat at $1.9 billion and segment operating income increased 30% to $243 million. Higher operating income was primarily due to an increase in domestic home entertainment, partially offset by decreases in domestic theatrical distribution and music distribution.

Higher domestic home entertainment results were primarily due to lower distribution costs and marketing expenses, driven by cost reduction initiatives, and lower production cost amortization and participation expense. The decrease in amortization and participation expense reflected the strong performance of Up and The Proposal in the current quarter compared to WALL-E and The Chronicles of Narnia: Prince Caspian, which had high participation costs, in the prior-year quarter.

The decrease in domestic theatrical distribution was driven by higher film cost write-downs in the current quarter. Lower results in music distribution were primarily due to lower album sales reflecting the strong performance of High School Musical 3 in the prior-year quarter.

Consumer Products

Consumer Products revenues for the quarter decreased 3% to $746 million and segment operating income decreased 8% to $243 million.

Lower segment operating income was primarily due to decreased earned licensing revenue across a number of product categories driven by lower performance of High School Musical and Hannah Montana merchandise.

Interactive Media

Interactive Media revenues for the quarter decreased 29% to $221 million and operating results improved from a loss of $45 million in the prior-year quarter to a loss of $10 million in the current quarter driven by improvements at Disney Interactive Studios and Disney Online.

At Disney Interactive Studios, lower unit sales of self-published video games, driven by fewer releases, were more than offset by lower marketing expenses, inventory costs and bad debt charges. The increase at Disney Online was driven by increased subscription revenues at Club Penguin.