Two months after completing its initial public offering, DreamWorks Animation SKG Inc. has posted a third-quarter net profit of $20.3 million. The boffo box office and home video performance of Shrek 2 and a $300 million worldwide take for Shark Tale provided a much-needed boost for the toon division, which reported a net loss of $35.9 million during the same period last year.
Revenue for DreamWorks Animation this quarter totaled $241.3 million against costs of $196.3 million. For the nine months ended Sept. 30, 2004, revenue totaled $582.5 million for a net income was $141 million. Last year the company lost $150.6 million over the same nine-month period.
DreamWorks Animation also announced that it has decided to move its release of Shrek 3 from November 2006 to May 2007. Studio head Jeffrey Katzenberg comments, “The sheer magnitude of the Shrek franchise has led us to conclude that a May release date–with a DVD release around the holiday season–will enable us to best maximize performance and increase profitability, thereby generating enhanced asset value and better returns for our shareholders.”
The announcement of Shrek 3’s delay comes just one day after Disney and Pixar announced that their upcoming CG feature, Cars, was moving from November 2006 to June 2006.
Katzenberg also mentioned that DreamWorks Animation remains dedicated to producing two major computer-animated features a year. In addition to the third Shrek installment, the slate includes Madagascar (May 27, 2005), Wallace & Gromit: Tale of the Were Rabbit on (Oct. 7, 2005), Over the Hedge (May 19, 2006) and Flushed Away (fall 2006).