DreamWorks Animation Posts Strong Q3 Results

GLENDALE: DreamWorks Animation’s revenues for the third quarter surged 43.3 percent to $259.2 million, with strong performances across all operating segments.

"DreamWorks Animation delivered solid third quarter results, highlighted by strong top-line growth and meaningful segment gross profit across all of our businesses," said Jeffrey Katzenberg, the CEO of DreamWorks Animation. "While we still have considerable work ahead of us, I am proud of the team's collective efforts and remain confident that we are well positioned to meet or even exceed our stated goals for the year while continuing to drive long-term value for our stakeholders."

Segment gross profit improved 37 percent to $99 million compared to the prior year.

Revenues for the quarter from the TV series and specials segment increased to $50.7 million, compared to $14.3 million during the prior-year period. The increase in revenues was thanks to a significantly higher number of episodes delivered under episodic content licensing arrangements. Segment gross profit increased to $15.3 million in the quarter, from $2.3 million in the same period a year ago. The increase was primarily led by higher revenues along with favorable amortization rates associated with episodic series, partially offset by up-front marketing costs associated with the release of new television series.

In the feature film segment, revenues increased to $157.9 million, up from $142.4 million in the prior-year period. Segment gross profit decreased to $54.3 million compared to $64.3 million in the same period of last year, primarily due to contributions earned in the prior-year period in the worldwide theatrical market from How to Train Your Dragon 2. Home contributed feature film segment revenue of $49.7 million in the quarter, while The Penguins of Madagascar contributed $39.8 million. How to Train Your Dragon 2 contributed feature film segment revenue of $7.4 million in the quarter, primarily from international pay-TV and home entertainment.

Consumer products delivered revenues of $27 million in Q3, compared to $12.1 million in the same period last year. The increase was primarily due to revenues earned from new and extended location-based entertainment license arrangements in the quarter, as well as merchandise licensing agreements related to IP rights associated with characters from feature films and episodic TV series. Revenues also included contributions from merchandising and other licensing activities. Segment gross profit increased to $15.8 million from $4.2 million in the prior-year period, as revenues earned from location-based entertainment license arrangements have lower associated costs.

The company's new-media segment reported revenues of $20.7 million, compared to $8.5 million during Q3 2014. This increase was primarily attributable to revenue generated from licensing and distribution of content and brand sponsorship arrangements. Segment gross profit increased to $10.9 million from $2.3 million in the prior-year period.

Revenues from all other segments for the quarter were $2.9 million, compared to $3.6 million in the prior-year period, and gross profit was $2.4 million compared to a loss of $1.1 million for the third quarter of 2014.