DreamWorks Q2 net falls 63% to $12.8 mn

MUMBAI: DreamWorks Animation?s net income for the second quarter ended 30 June tanked 63 per cent to $12.8 million from $34.1 million a year ago.

The company?s total revenue for the quarter was $162.8 million, down 25 per cent from the year ago period.

"DreamWorks Animation?s second quarter of 2012 was driven primarily by the box office performance of Madagascar 3: Europe?s Most Wanted, the seventh highest-grossing film of the year," said DreamWorks Animation CEO Jeffrey Katzenberg.

"The third and biggest film in our blockbuster Madagascar franchise has surpassed $500 million at the worldwide box office to date, with a large number of key international territories yet to come."

Madagascar 3: Europe?s Most Wanted contributed approximately $54.8 million of revenue to the quarter, driven primarily by its performance at the worldwide box office. The film was released on 8 June and has grossed approximately $210 million at the domestic box office and $293 million at the international box office to date.

Puss In Boots contributed $22.8 million of revenue to the quarter, driven primarily by home entertainment.

The film reached an estimated 5.2 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns. Kung Fu Panda 2 contributed $46.4 million of revenue to the quarter, driven primarily by domestic pay television.

The film reached an estimated 5.7 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.

Megamind contributed $1.4 million of revenue to the quarter, driven primarily by home entertainment. The film reached an estimated 5.5 million home entertainment units sold worldwide through the end of the second quarter, net of actual and estimated future returns.

Library, which now includes Shrek Forever After, contributed approximately $27.4 million of revenue to the quarter. All Other items, including non-feature film businesses, contributed $10.0 million of revenue to the quarter, of which Shrek The Musical in London was the single largest contributor. Costs of revenue for the quarter equaled $114.2 million.

Selling, general and administrative expenses totaled $30.8 million, including approximately $5.2 million of stock-based compensation expense. The Company?s income tax expense for the second quarter was $5.9 million.

Its combined effective tax rate and the actual tax rate coupled with the effect of the Company?s tax sharing agreement with a former stockholder was approximately 30% for the second quarter.

DreamWorks Animation?s third quarter results are expected to be driven primarily by the continued theatrical performance of Madagascar 3: Europe?s Most Wanted. Television revenue for Puss In Boots is also expected to contribute to the Company?s third quarter results.