BOX OFFICE - 'Compass' points its way to the No. 1 spot - Its domestic sales are less than expected but the reception overseas is warmer. 'Enchanted' holds up well at No. 2.

The picture, seen as the start of a potential blockbuster franchise in the "Lord of the Rings" vein, got a warmer welcome overseas, pulling in $55 million abroad for a worldwide total of $81 million, New Line said.

"We were hoping for a little better domestically but the international numbers were solid," said Rolf Mittweg, New Line's president and chief operating officer of worldwide distribution and marketing.

As of last week, the studio had been looking for a North American opening in the range of $30 million to $40 million for the film from writer-director Chris Weitz.

The PG-13 movie, based on the first book in British author Philip Pullman's acclaimed "His Dark Materials" trilogy, was the only wide release to hit the marketplace, and it set the pace for another dismal weekend at the box office overall.

Results were down from the corresponding weekend in 2006 for the fifth straight time, according to Media by Numbers. It was not the kind of news Hollywood was hoping for in the face of an increasingly bitter writers strike that looks as though it could drag on for months.

Walt Disney Co.'s modern-day fairy tale "Enchanted" held up firmly in its third weekend, taking in an estimated $10.7 million to rank No. 2. The mix of animation and live action, starring Amy Adams, has racked up $83.9 million through three weekends.

With the holiday season in high gear, two Christmas-themed movies are continuing to attract family audiences. Sony Pictures' ensemble drama "This Christmas" and Warner Bros.' comedy "Fred Claus" came in third and fourth with about $5 million apiece, based on studio estimates.

New Line acknowledges spending $180 million to make "The Golden Compass," starring Nicole Kidman, Daniel Craig and newcomer Dakota Blue Richards, although industry sources speculate that the picture's true cost soared above $200 million in postproduction.

Reviews have been mixed for the film, about a 12-year-old girl who journeys to a parallel universe to save her best friend and other kidnapped children from experiments conducted by a mysterious organization.