DreamWorks Animation Profit Slightly Down28 Jul, 2009 By: Chris Tribbey
DreamWorks Animation SKG reported profit of $25.6 million for the three-month quarter ended June 30, down slightly from profit of $27.5 million during the same period in 2008.
Revenue was down from $141.5 million in the second quarter of 2008, to $132 million.
Pay TV and DVDs of Kung Fu Panda helped contribute $32.7 million for the quarter, with more than 15 million home video units sold worldwide to date. Madagascar: Escape to Africa contributed $26.1 million, with more than 10 million units sold.
Monsters vs. Aliens, which earned nearly $200 million at the domestic box office, contributed $10.3 million for the quarter, while 2007 releases Bee Movie ($9.7 million) and Shrek the Third ($2.4 million) chipped in as well. Library titles contributed nearly $60 million for the quarter.
During a conference call with investors July 28, DreamWorks Animation CEO Jeffrey Katzenberg said, “we have not seen any decline in the last three titles we released,” despite the overall slowdown in the DVD business.
He added that he believes Blu-ray Disc will be a good home entertainment vehicle for future 3D releases from the studio. DreamWorks is releasing Monsters vs. Aliens Sept. 29, but not on 3D, since the digital 3D format seen in theaters can’t currently be duplicated on a large scale in American homes. An accompanying short, “B.O.B.'s Big Break,” will be in color-coded 3D.
COO Ann Daly said the studio has high hopes for Monsters and its street date, beating a fourth-quarter release slate crowded with releases from other studios. She also addressed the recent agreement announced between DVD rental kiosk operator Redbox and Sony Pictures Home Entertainment.
“For our business, while rental is important, it’s smaller for us,” she said. “We see it to be a part of our business, but limited to a smaller part.”