“How to Train Your Dragon 2” breathed a little fire into DreamWorks Animation’s third quarter.
The company reported revenue of 14 cents per share on revenue of $180.9 million. This compares with last year’s $0.12 per share on revenue of $154.5 million. Net income hit $11.9 million, up from $10.1 million at the same time in 2013.
“The third quarter of 2014 was strong for DreamWorks Animation, with both quarterly revenue and earnings per share up 17 percent in a year-over-year comparison,” commented Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation. “Driving the Company’s third quarter results is the blockbuster performance of ‘How to Train Your Dragon 2,’ which has reached over $615 million at the worldwide box office to become the highest-grossing animated film of the year.”
Analysts expected earnings of 5 cents a share, according to Thomson Reuters, compared with 12 cents at the same time a year ago.
Katzenberg did not comment on the current SEC investigation regarding the $13.5 million write-down on Turbo. The studio has also taken writedowns on “Mr. Peabody & Sherman” and “Rise of the Guardians.”
In recent years, Katzenberg has sought to diversify DreamWorks Animation’s business to insulate itself from the vicissitudes of the film business, which Katzenberg has said is no longer a growth business. The company has since acquired AwesomenessTV, struck a deal with Netflix to produce original series and has built out its consumer products division. On Wednesday, Netflix ordered a live action “Richie Rich” series produced by AwesomenessTV.
Katzenberg reemphasized the company’s five significant growth areas — television, consumer products, retail opportunities, Awesomeness TV and Oriental DreamWorks.
“It’s a very exciting time for our company,” said Katzenberg. “We’re investing in and building a number of new businesses in new territories across the globe. As we do this, we are presented with more opportunities than ever before. … We remain bullish in our diversification efforts.”
DreamWorks Animation saw a lower-than-expected second quarter in July. The studio has also seen an increase in production costs. The upcoming “Penguins of Madagascar” and “Home” will cost $135 million, counter to plans to keep costs at $120 million and under.