DreamWorks Reports Profits Up for 4Q, 2010

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With three movies released and strong financials, 2010 was a good year for DreamWorks Animation.

The company reported its fourth-quarter and year-end results. For the fourth-quarter, DreamWorks reports total revenue of $275.7 million and net income of $85.2 million. That’s up from revenue of $194.2 million and net income of $43.6 million for the fourth quarter of 2009.

The annual results show total revenue of $784.8 million and net income of $170.6 million. This compares to total revenue of $725.2 million and net income of $151.0 million.

The three films DreamWorks released in 2010 — How to Train Your Dragon, Shrek Forever After and Megamind — grossed about $1.6 billion worldwide. Strong home video sales for Dragon in particular made up for Megamind not meeting box office expectations. The company also reported operating losses associated with its online virtual world and Shrek the Musical national touring company, and a fourth-quarter tax benefit of $45 million.

In a conference call related to the reports, CEO Jeffrey Katzenberg said the company may pull back from previously announced plans to release five features every 24 months. While the company will meet that goal for 2010 and 2011, Katzenberg says the studio will play it by ear going forward from 2012.

The company plans to release Kung Fu Panda 2 and Puss in Boots in 2011, with The Croods, Madagascar 3 and Rise of the Guardians planned for 2012.