'Madagascar 3' Drives Q3 Results at DreamWorks Animation
UPDATED: The company reports a 24 percent increase in profit, driving shares higher in after-hours trading.
DreamWorks Animation reported third-quarter net income of $24.4 million, up from $19.7 million a year ago while revenue rose to $186.3 million from $160.8 million last year.
The results topped the expectations of analysts, quickly sending shares as much as 4 percent higher after having risen 1 percent to $20.61 during the regular session.
The third-quarter results were driven by Madagascar 3: Europe's Most Wanted, which earned almost $720 million at the worldwide box office, CEO Jeffrey Katzenberg said. The movie accounted for $47.1 million of the company's overall revenue.
The next biggest single-movie contributor was Puss In Boots with $44.8 million in revenue. The film had sold 5.6 milion home-entertainment units through the end of the quarter.
Kung Fu Panda contributed $9 million during the quarter and has sold 6 million home-entertainment units, while Megamind contributed $700,000 and has sold 5.6 million home-entertainment units.
The biggest contributor of overall revenue was the company's library product, which racked up $50.6 million. The category of "other," which includes live stage shows, contributed $30.1 million in revenue.
Classic Media, an acquisition thagt DWA completed Aug. 29 for $155 million, contributed $4 million in revenue but nothing to the bottom line.
Katzenberg told analysts during a conference call with analysts that he expects consumer products to be a more meaningful contributor to revenue going forward.
He also said a third How to Train Your Dragon movie could be in store. The second installment of that franchise is due in June, 2014.
He said the third in the Kung Fu Panda franchise will be a true co-production with Oriental DWA, with about one-third of the work going to Shanghai. An original movie from Oriental DWA is planned for 2017 and one per year after that.
DreamWorks Animation had planned to report quarterly financials on Tuesday but switched to Thursday due to Hurricane Sandy.
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