From the Associated Press:
LOS ANGELES (AP) — DreamWorks Animation SKG said on Tuesday that its first-quarter net income fell 65 per cent compared with a year ago, mainly because the movie studio lacked a major home video release at the start of this year.
The studio’s net profit of $22 million, or 24 cents a share, still beat analysts’ expectations by a penny a share. In the comparable period last year, it posted a profit of $62 million, or 71 cents a share.
Revenue at DreamWorks fell 38 per cent, to $162 million, from $264 million.
The company also said it would release a sequel to its popular movie “How to Train Your Dragon,” which topped the box office last weekend. The sequel is set for release in 2013.
Shares rose 37 cents, to $42.73, in after-hours trading after falling 63 cents to close at $42.36 in the regular session Tuesday.
About $60 million of the revenue in the quarter came from merchandising and licensing from “Dragon,” while $25 million more came from “Monsters vs. Aliens” on pay television domestically.
The company said its second-quarter results would be driven largely by “Shrek Forever After,” its fourth entry in the series.
DreamWorks Animation, based in Glendale, Calif., was spun off from the privately held live-action studio headed by Steven Spielberg, DreamWorks SKG, in a public stock offering in 2004.
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