Madagascar 3 drives up DreamWorks Animation's Q3 net profit

MUMBAI: DreamWorks Animation has seen its net income go up by 19 per cent to $24.4 million for the third quarter ended 30 September as compared to $19.7 million in the same quarter of the previous fiscal driven by the strong box showing office of Madagascar 3: Europe?s Most Wanted.

The company reported total revenue of $186.3 million during the quarter as opposed to $160.8 million a year earlier.

All other items, including non-feature film businesses, contributed $30.1 million of revenue to the quarter. The company?s acquisition of Classic Media, which closed on August 29, 2012, contributed approximately $4.0 million of revenue to the quarter, primarily from home entertainment. Costs of revenue for the third quarter equaled $114.0 million. Selling, general and administrative expenses totaled $36.5 million, including approximately $3.0 million of stock-based compensation expense.

"DreamWorks Animation?s third quarter results were driven by the blockbuster international box office success of Madagascar 3: Europe?s Most Wanted, which has earned nearly $720 million at the worldwide box office to date, to become the fifth highest-grossing film of the year on a global basis," said DreamWorks Animation CEO Jeffrey Katzenberg.

DreamWorks Animation?s fourth quarter results are expected to be driven primarily by the continued performance of Madagascar 3: Europe?s Most Wanted in the international box office as well as the global home video market.

The theatrical release of Rise of the Guardians on November 21, 2012 is also expected to contribute to the company?s fourth quarter results. "We are looking forward to the next major event film for the company during the fourth quarter, the November 21st theatrical release of Rise of the Guardians," he said.

Madagascar 3: Europe?s Most Wanted contributed approximately $47.1 million of revenue to the quarter, driven primarily by its performance at the worldwide box office, the company said in the release. The film was released on 8 June and has grossed over $216 million at the domestic box office and approximately $503 million at the international box office to date.

"Puss In Boots contributed $44.8 million of revenue to the quarter, driven primarily by domestic and international pay television. The film reached an estimated 5.6 million home entertainment units sold worldwide through the end of the third quarter, net of actual and estimated future returns. Kung Fu Panda 2 contributed $9 million of revenue to the quarter, driven primarily by international pay television," the statement added.

The film reached an estimated six million home entertainment units sold worldwide through the end of the third quarter, net of actual and estimated future returns.

Megamind contributed $0.7 million of revenue to the quarter and reached an estimated 5.6 million home entertainment units sold worldwide through the end of the third quarter, net of actual and estimated future returns. Library contributed approximately $50.6 million of revenue to the quarter.