DreamWorks Enjoys Solid Q226 Jul, 2011 By: Chris Tribbey
Kung Fu Panda 2 box office receipts and Megamind home entertainment sales helped DreamWorks Animation post a profit of $34.1 million for the second quarter (ended June 30), on revenue of $218.3 million.
During the same period in 2010, the studio posted revenue of $158.1 million and a profit of $24 million.
“Kung Fu Panda 2 is currently the fifth highest-grossing film of 2011 on a global basis and has exceeded $600 million at the worldwide box office to date,” said DreamWorks Animation CEO Jeffrey Katzenberg. “We are looking forward to the next two big events for the company during the second half of the year: the Nov. 4 theatrical release of Puss In Boots and the release of Kung Fu Panda 2 into the home video market in the fourth quarter.”
Megamind DVD and Blu-ray Disc sales helped contribute $19.7 million for the quarter, with 4.3 million units sold. Shrek Forever After (8.8 million units) and How to Train Your Dragon (8.7 million units) contributed $34.9 million and $41.4 million of revenue for the quarter, respectively. Library titles for the quarter helped contribute another $66.5 million.
Kung Fu Panda 2 contributed $55.8 million of revenue in the quarter.
During a conference call with investors Katzenberg would not comment on reports that the studio was in talks with Netflix to offer the company exclusive streaming rights to its films.
“Lots of gossip and rumors going on right now, and I would prefer us to take a ‘no comment’ on this today,” he said.
Ralph Schackart, analyst with William Blair & Co. in Chicago, said that despite lower DVD revenues, DreamWorks is taking advantage of every distribution opportunity.
“Shares have remained pressured recently due to lower-than-expected box office results for Megamind and Kung Fu Panda 2, falling domestic 3D rates and continued declines in DVD sellthrough, a trend we believe will continue until the market converts to digital ecosystems,” he wrote in a note to investors. “However, DreamWorks is also producing top animated content and leveraging it across new revenue streams, such as TV specials and TV series.”