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DreamWorks Animation Profit Drops in Q2 Despite Revenue Bump

Revenue spike of 20% exceeds analyst expectations, but various expenses drag down net income

DreamWorks Animation on Tuesday announced a second-quarter profit drop of 6 percent, with various expenses dragging down net income to $24 million.

This came despite a better-than-expected 20 percent revenue increase to $158.1 million for the quarter ended June 1.

According to DreamWorks officials, stock-option expenses drug down net income, as did $2 million in marketing expenses for online venture “Kung Fu Panda World.”

Meanwhile, revenue was driven “Shrek Forever After,” which contributed $51.8 million in the quarter (and much more to DreamWorks’ Q3 bottom line). The also-3D-animated “How to Train Your Dragon” added $33.4 million.

“Our strong second quarter was driven primarily by the blockbuster performances of ‘Shrek Forever After’ and ‘How to Train Your Dragon,’ two of the top 10 films of 2010 on both a domestic and a worldwide basis,” said Jeffrey Katzenberg, DreamWorks Animation’s CEO. “We have once again surpassed $1 billion in worldwide box office and with Megamind still to be released on November 5th, we are on track to make 2010 not only DreamWorks Animation’s single biggest year at the box office, but also the biggest year ever for any CG animation studio.”

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