DreamWorks Animation SKG Inc. beat Wall Street expectations on revenue and earnings in the first quarter on the strength of television and new media.
The Glendale film and television studio on Tuesday reported net income of $12.1 million (16 cents a share) in the quarter ended March 31, compared with a net loss of $55.9 million (-64 cents) in the same period a year earlier. Revenue increased 14 percent to $190 million.
Analysts on average expected earnings of 1 cent a share on revenue of about $183 million, according to Thomson Financial Network.
Chief Executive Jeffrey Katzenberg said the first quarter performance reflected a strategy of transitioning DreamWorks Animation into a global family entertainment company.
During the quarter, DreamWorks released “Kung Fu Panda 3,” which brought in $514 in global box office, or about $31 million toward feature film revenue that totaled $94.3 million.
Television series revenue increased by more than 200 percent to $57 million from the prior year, which the company attributed to delivering more episodes under content licensing arrangements.
New media revenue also increased by more than 200 percent to $15.2 million from the prior year. The increase was attributed to licensing and distribution of content.
On April 28, Comcast Corp. announced that its NBCUniversal division would acquire DreamWorks Animation in a deal valued at $3.8 billion. The transaction is expected to close before the end of the year.
“I'm excited to be passing the baton to Comcast, as I know they will continue to build on the foundation we've established over the past 22 years,” Katzenberg said in a prepared statement.
Results were announced after the markets closed. Shares closed down 8 cents, or a fraction of a percent, to $39.78 on the Nasdaq.