DreamWorks Animation profit drops 45% in fourth quarter

Revenue from the DVD release of 'Kung Fu Panda' fails to match that of 'Shrek the Third' a year earlier.

DreamWorks Animation Studios reported a 45% drop in net income during the fourth quarter of 2008 as DVD revenue from "Kung Fu Panda" failed to match that of "Shrek the Third" a year earlier.

Results were below analysts' estimates.

The Glendale studio reported that net income declined to $51.6 million, or 58 cents a share, from $94.1 million, or 98 cents, a year earlier. Revenue for the quarter ended Dec. 31 fell 31% to $199.8 million.

DVD sales from "Kung Fu Panda" generated $102 million in revenue during the quarter, compared with $179 million pulled in by "Shrek the Third" after its release in the fourth quarter of 2007.

"Kung Fu Panda," which grossed more than $630 million in worldwide ticket sales, was released on DVD in November, in time for holiday shopping season.

Home video sales in general, which Hollywood has relied upon for years to bolster the movie business, have slowed considerably as the recession has cut into consumer spending.

Read More Article...

Related Posts by Categories

Widget by Hoctro | Jack Book