'Shrek' boosts DreamWorks Animation

'Shrek' boosts DreamWorks Animation

	Published : Tue, 31 Jul 2007 23:53 By : Agencies Print this Story

LOS ANGELES (AP) - 'Shrek the Third' proved to be a charm for DreamWorks Animation SKG Inc., contributing nearly half of its revenue in the second quarter, the company said Tuesday.

The Glendale-based studio said it had net income of $61.8 million for the three months ended June 30, or 60 cents per share, compared with net income of $13.7 million, or 13 cents per share, in the same period last year.

Revenue soared to $222.5 million, compared with $74.9 million in the year-ago period.

The results included a one-time gain of 11 cents per share resulting from a reduction in reserves taken for home video sales and for marketing costs.

The company said it had lower costs than anticipated due to the transfer of its home video business from Universal Studios, a unit of General Electric Co., to Paramount Pictures, which is owned by Viacom Inc.

The results also included a one-time gain of 4 cents due to tax matters.

Without the one-time income, earnings were 45 cents per share, which beat the 31 cents per share expected by analysts surveyed by Thomson Financial. Analysts had been looking for revenue of $150.8 million.

'Shrek the Third' achieved the biggest domestic opening ever for an animated film when it was released in May and has earned more than $400 million worldwide -- $320 million at the domestic box office alone.

The film brought $109.1 million in revenue during the second quarter, which came from the box office and the sale of Shrek-related products.

'Challenged by pirates, Spider-Man, wizards and Transformers, our ogre has more than held his own,' DreamWorks Animation Chief Executive Jeffrey Katzenberg told analysts in a conference call.

The success of Shrek illustrates the company's strategy of releasing one franchise film each year along with a new film. The studio will release 'Bee Movie' in November, which was written by comedian Jerry Seinfeld.

A Broadway musical based on the Shrek films will debut next year. Katzenberg told analysts the studio plans two more Shrek films.

The results were released after the close of regular trading. Shares of DreamWorks Animation gained $1.50, or 4.8 percent, in extended trading after falling 12 cents to $31 in the regular session.

For the first six months, the company reported net income of $77.2 million, or 75 cents per share, compared to $26 million, or 25 cents per share in the same period last year.

Revenue for the first six months increased to $316.2 million compared with $135 million in the same period last year.

(This version CORRECTS worldwide revenue for Shrek.)