More Marvel financials

Marvel’s Publishing Segment net sales declined by $1.0 million or 4% to $26.5 million in Q1 2008 principally due to the timing of major publishing initiatives. Q1 2008 net sales reflected a decline in comic book sales within the direct channel and lower advertising and custom sales, offset in part by continued strong growth in the Mass Market channel. The year-over-year decline in direct channel sales principally reflects strong sales of high profile titles Civil War and The Death of Captain America in the year ago period, versus no comparable specialty titles in Q1 2008. Operating income in the Publishing segment declined by 14% on a year-over-year basis to $9.9 million in Q1 2008 with an operating margin of approximately 37% compared to approximately 42% in the prior-year-period. Based on its planned slate of publishing initiatives, including the release of the Secret Invasion series in late Q2 2008, Marvel expects its Publishing segment to return to traditional margins for the full year 2008.