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Earnings Roundup

'Shrek' lifts DreamWorks Animation

August 01, 2007|From Times Wire Services

"Shrek the Third" proved to be a charm for DreamWorks Animation SKG Inc., contributing nearly half of its revenue in the second quarter, the company said Tuesday.

The Glendale-based studio said it had net income of $61.8 million for the three months ended June 30, or 60 cents a share, compared with net income of $13.7 million, or 13 cents, in the same period last year.

Revenue soared to $222.5 million, compared with $74.9 million a year earlier.

The results included a one-time gain of 11 cents a share resulting from a reduction in reserves taken for home video sales and for marketing costs.

The company said it had lower costs than anticipated because of the transfer of its home video business from Universal Studios, a unit of General Electric Co., to Paramount Pictures, which is owned by Viacom Inc.

The results also included a one-time gain of 4 cents because of tax matters.

Without the one-time income, earnings were 45 cents a share, which beat the 31 cents a share expected by analysts surveyed by Thomson Financial. Analysts had been looking for revenue of $150.8 million.

"Shrek the Third" achieved the biggest domestic opening for an animated film when it was released in May and had earned more than $400 million worldwide -- $320 million at the domestic box office alone.

The film brought $109.1 million in revenue during the second quarter, which came from the box office and the sale of Shrek-related products.

The results were released after the close of regular trading. Shares of DreamWorks Animation gained $1.50, or 4.8%, in extended trading after falling 12 cents to $31 in the regular session.

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