DreamWorks Animation SKG Inc. (DWA:US), maker of the “Kung Fu Panda” films, said first-quarter profit rose 3.2 percent on overseas ticket sales and home-video revenue from the film “Puss in Boots.”
Net income increased to $9.1 million, or 11 cents a share, from $8.8 million, or 10 cents, a year earlier, the Glendale, California-based company said today in a statement (DWA:US). Analysts predicted 9 cents, the average of 12 estimates compiled by Bloomberg. Sales rose 26 percent to $136.1 million, beating projections of $133.3 million.
“Puss in Boots” had worldwide ticket sales of $554 million and contributed $73.6 million in revenue for the quarter, the company said. The filmmaker produces two to three movies a year. The first of two theatrical releases for 2012, “Madagascar 3: Europe’s Most Wanted,” opens on June 8. “Rise of the Guardians” comes out Nov. 21. DreamWorks Animation has three movies slated in 2013.
DreamWorks Animation rose 2 percent to $18.46 at the close in New York. The stock has gained (DWA:US) 11 percent this year.
An agreement for Viacom Inc. (VIAB:US)’s Paramount Pictures to distribute its films worldwide expires this year.
Creating an internal distribution system is among the options DreamWorks Animation is considering, Chief Executive Officer Jeffrey Katzenberg said today on a conference call. The company won’t begin serious discussions about the alternatives until after “Madagascar 3” is released, he said.
In addition to theatrical revenue, DreamWorks Animation collects sales from DVDs and pay television.
In September, DreamWorks Animation signed a home-video accord with Netflix Inc. (NFLX:US) that starts next year.
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