Studio relies heavily on “Megamind”s’ home entertainment debut to fill a release gap, but fails to match analysts expectations
Without a major spring theatrical release, DreamWorks Animation's profits fell 59 percent in the first quarter of 2011.
But in a news release touting the earnings, the Glendale, California-based studio said its flagging fortunes would be reversed with the May release of "Kung Fu Panda 2."
"We now look forward to kick-starting the summer movie-going season with Kung Fu Panda 2 on May 26th, as family entertainment — and CG animation in particular — has performed at the top of the box office charts so far this year," CEO Jeffrey Katzenberg said in a statement.
DreamWorks Animation reported net income of $8.79 million, or 10 cents a share, down from $21.7 million, or 24 cents, during the same period last year.
Revenue plummeted 33 percent to $108 million during the three-month span.
That was in line with Wall Street's expectations for the studio. Analysts polled by Thomson Reuters had predicted 10 cents per share, excluding items, on revenue on $107 million.
With the premiere of the "Kung Fu Panda" sequel still a month away, the home entertainment debut of "Megamind" and residual earnings from earlier releases such as "How to Train Your Dragon" and "Shrek Forever After" drove the company's revenues.
Through disc sales and video on demand, the studio received $18.1 million in revenue from "Megamind," $19.9 million from "Shrek" and $8.7 million from "Dragon."
The studio's second major theatrical release "Puss in Boots" hits theaters in November.
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