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DreamWorks Animation earnings drop 59% in third quarter

DreamWorks Animation earnings drop 59% in third quarter
The success of "The Croods," from Dreamworks Animation, could not stop the company from posting a quarterly drop of 59% from the same period last year. (DreamWorks Animation / Associated Press)

DreamWorks Animation's earnings fell 59% in the third quarter compared with the same period a year, the company reported Tuesday, but the results were still well ahead of what analysts had predicted.

The Glendale-based creator of the "Shrek" and "Kung Fu Panda" movies reported earnings of $10.1 million, or 12 cents a share, on revenues of $154.5 million in the three months ended Sept. 30.

That compared with a earnings of $24.4 million, or 29 cents a share, on revenues of $186.3 million during the same quarter a year ago, the company said.

Nonetheless, the earnings and revenue estimates were well ahead of what most analysts had predicted for the studio.

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"Strength in our feature film segment is the single largest driver of our positive third-quarter earnings," DreamWorks Animation Chief Executive Jeffrey Katzenberg said. "It also continues to propel new areas of growth for DreamWorks Animation as we have now transitioned into a global, diversified family entertainment company."

The results reflected the weak performance of the studio's latest animated movie, "Turbo," which was released July 17 nd has grossed $246.2 million to date. "Turbo," which cost $127 million to make, contributed feature film revenue of $6.4 million to the third quarter.

Still, Katzenberg told analysts he still expects the movie to make a profit, helped in part by an original kids series called "Turbo: F.A.S.T." that will debut on Netflix in December.

Film revenues from a year ago also were higher because of the hit movie "Madagascar 3: Europe's Most Wanted," which was released in June.

Overall, the feature film segment contributed revenue of $120.7 million and gross profit of $55.4 million to the third quarter, DreamWorks said.

"The Croods,"

which was released on March 22, has generated $587 million in worldwide ticket sales, making it the sixth-highest-grossing film of the year on a global basis. "The Croods" contributed feature film revenue of $4 million to the quarter.

The company's consumer products segment contributed revenue of $12 million and gross profit of $3 million to the third quarter, primarily from "Turbo" and titles from the Classic Media library.

Costs of revenue for the quarter equaled $91.7 million. Selling, general and administrative expenses totaled $47.7 million, including $4.5 million of stock-based compensation expense, the studio said.

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