Revenues, Profits Dip in 1st Quarter for DreamWorks

DreamWorks Animation saw down results in its first quarter reporting, with net earnings and profits down versus the first quarter of 2010 when How to Train Your Dragon was released.

The results for this quarter came mostly from last year’s films as DreamWorks Animation prepares to release Kung Fu Panda 2 on May 26. The company posted total revenue for the quarter of $108 million and net income of $8.8 million, down from $162 million and $21.7 million respectively for the first quarter of 2010.

“DreamWorks Animation’s first quarter of 2011 was driven primarily by our 2010 films, including Megamind, which had a solid performance following its Feb. 25 release into the home entertainment market,” said Jeffrey Katzenberg, CEO of DreamWorks Animation. “We now look forward to kick-starting the summer movie-going season with Kung Fu Panda 2 on May 26, as family entertainment — and CG animation in particular — has performed at the top of the box office charts so far this year.”

In a conference call with investors, Katzenberg says the studio will avoid features that parody various genres in the manner of Megamind, Monsters vs. Aliens and Shark Tale after those films’ premises failed to translate into overseas ticket sales.

Here’s how recent DreamWorks titles contributed to the bottom line this quarter:

• Megamind contributed $18.1 million of revenue in the quarter, driven primarily by its domestic home video release. The film reached an estimated 2.9 million home entertainment units sold worldwide through the end of the quarter.
• Shrek Forever After contributed $19.9 million of revenue in the quarter, driven primarily by home entertainment. The film reached an estimated 8.2 million home entertainment units sold worldwide through the end of the quarter.
• How to Train Your Dragon contributed $8.7 million of revenue in the quarter, driven primarily by home entertainment. The film reached an estimated 8.3 million home entertainment units sold worldwide through the end of the quarter.
• Kung Fu Panda contributed $12.1 million of revenue to the quarter, primarily from international free television.
• Madagascar 2 contributed revenue of $19.1 million, primarily from domestic and international free television.
• Library and other items, including non-film businesses, contributed approximately $30.1 million of revenue to the quarter.

The company also provided an update to its share repurchase program. Year to date, DreamWorks Animation has repurchased about 900,000 shares for $25 million. The company has $125 million remaining under its current authorization.