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DreamWorks Animation posts higher profit

DreamWorks Animation posts higher profit

DreamWorks Animation SKG Inc., the studio behind the "Shrek" movies, reported higher first-quarter profit Tuesday, driven by home video sales for "Over the Hedge."
For the three months ended March 31, the Glendale-based company reported net income of $15.4 million (euro11.32 million), or 15 cents per share, compared with net income of $12.3 million (euro9.04 million), or 12 cents per share, in the year-ago period.
Revenue rose to $93.7 million (euro68.87 million) from $60.1 million (euro44.17 million) in the same period last year.
Analysts surveyed by Thomson Financial had expected profit of 7 cents per share on revenue of $68.3 million (euro50.2 million).
The results included a $6.8 million (euro5 million) tax benefit related to a tax-sharing agreement with a stockholder, the company said. The benefit was partially offset by a $5.8 million (euro4.26 million) increase in the income tax benefit payable to the stockholder.
"In what was a relatively quiet quarter, our library of titles continued to perform well especially in the home video market, with 'Over the Hedge' performing even better than we had expected," Chief Executive Jeffrey Katzenberg said in a statement.
Home video sales of the film represented about $33.1 million (euro24.33 million) of the company's revenue during the quarter. The film had shipped 12.6 million units, as of March 31, the company said.
Revenue from "Shark Tale" was about $18.1 million (euro13.3 million), driven primarily from network TV airings, while "Shrek 2" generated some $17.5 million (euro12.86 million), primarily from international television, the company said.
"Flushed Away," which was a box office disappointment for the studio last year, has taken in about $176 million (euro129.36 million) in worldwide box office receipts. The film contributed $1.2 million (euro880,000) in revenue during the quarter, primarily from merchandising and licensing, the company said.
The company also generated home video and television revenue from other movie properties during the quarter, including "Wallace & Gromit: The Curse of the Were-Rabbit" and "Madagascar."
The studio is already looking ahead at "Shrek the Third," slated to be released on May 18 in the U.S.
In a conference call with Wall Street analysts, Katzenberg said he was confident about the movie and its marketing campaign but acknowledged the film will be vying for moviegoers along with two other powerhouse sequels to be released this month: "Spider-Man 3," from Sony Corp.'s Columbia Pictures, and "Pirates of the Caribbean: At World's End," from the Walt Disney Co.
"We're facing some very tough competition, and there is no way to predict how it will affect our performance," Katzenberg said. "But I'm confident that there is enough capacity in the market for each film to be very successful."
The company said its results for the rest of the year will be largely driven by "Shrek the Third."
The company said it does not expect to generate significant revenue in the fourth quarter from "Bee Movie," which is due for release on Nov. 2.
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Updated : 2021-02-25 10:51 GMT+08:00