“Madagascar 3: Europe’s Most Wanted,” one of two feature films released by DWA this year generated $501 million, an impressive number, but with less than expected demand numbers outside of the U.S. Apparently the title of this film revealed a deeper signal.
DWA’s income contracted 63% to almost $13 million or 15 cents a share from $34.1 million and 40 cents a share a year ago when “Kung Fu Panda 2” was released. Analysts were expecting earnings of 25 cents a share.
Revenue was reported to be $162.8 million, below estimates of $186.2 million. DWA attributes the fall in revenue to falling DVD sales due to lack of demand for DVD ownership and user’s preference to use services such as NetFlix instead of purchasing a DVD hard-copy.
David Cornes holds a degree in economics from the University of Montana.
