Kung Fu Panda 2 gave the bottom line at DreamWorks Animation a big boost, helping to boost revenue 38 percent and net income 42 percent over the same quarter last year.
For the second quarter of 2011, DreamWorks reported total revenue of $218.3 million and net income of $34.1 million, or $0.40 per share on a fully diluted basis. This compares to revenue of $158.1 million and net income of $24.0 million, or $0.27 per share on a fully diluted basis, for the same period in 2010.
“Kung Fu Panda 2 is currently the fifth highest-grossing film of 2011 on a global basis and has exceeded $600 million at the worldwide box office to date,” said Jeffrey Katzenberg, CEO of DreamWorks Animation, in a statement. “We are looking forward to the next two big events for the company during the second half of the year: the Nov. 4 theatrical release of Puss In Boots and the release of Kung Fu Panda 2 into the home video market in the fourth quarter.”
Kung Fu Panda 2, which was released on May 26, contributed $55.8 million of revenue in the quarter, generated by its worldwide box office performance as well as merchandising and licensing activities. It has grossed approximately $160 million in domestic box office and approximately $440 million in international box office to date.
In a conference call for investors, Katzenberg said Kung Fu Panda 2 lost about $20 million from its domestic box office sales by opening the same weekend as The Hangover, Part 2. The phenomenon, however, was present only in the domestic market and the film’s strong overseas performance keeps the film in the black and a valuable franchise.
Megamind contributed $19.7 million of revenue in the quarter, driven primarily by home entertainment. The film reached an estimated 4.3 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns. Shrek Forever After and How to Train Your Dragon contributed $34.9 million and $41.4 million of revenue in the quarter, respectively, driven primarily by worldwide pay television and home entertainment. These films reached an estimated 8.8 million and 8.7 million home entertainment units, respectively, sold worldwide through the end of the second quarter, net of actual and estimated future returns. Library and other items, including non-film businesses, contributed approximately $66.5 million of revenue to the quarter.
In the call, Katzenberg said he had nothing to report on talks to renew the company’s distribution deal with Paramount in the wake of the latter’s announcement of its own animation division. He also didn’t comment on the company’s reported talks with Netflix.