DreamWorks Animation SKG Generates Fourth-quarter Profits of $43.6 Million

DreamWorks Animation enjoyed a solid fourth quarter as consumers in America and around the world flock to movie theaters to see their family films, or buy the DVD or Blu-ray versions to view at home. Profits for the fourth quarter came in at $43.6 million as a result of those factors.

Including the $194.2 million in revenue for the quarter ending December 31, Dreamworks generated $725.2 million in revenue for the overall year, with annual profits ending at $151 million.

In contrast, last year the had $650.1 million in revenue and profits of $142.5 million. While better, it does seem to speak to the continual tightening of consumers' wallets in America, forcing companies to offer lower prices and discounts to generate sales.

On a conference call with investors, DreamWorks Animation CEO Jeffrey Katzenberg said, “While shifting consumer habits are having a greater impact on the home video market than ever before; our titles remain at the top of the charts.”

with the way the business works, much of the revenue came from past projects like Monsters vs. Aliens, Madagascar: Escape 2 Africa, Kung Fu Panda and Shrek the Third. In the case of Shrek the Third, that was from the show being offered on global as well as domestic television. Shrek added $38.6 million in revenue for the quarter, while the combination of Madagascar: Escape 2 Africa and Kung Fu Panda helped with a hefty $40.8 million together. Monsters vs. Aliens increased the fourth-quarter total by another $29.1 million, including about 6.6 million home units sold for all of 2009.

After the success of Avatar in 3-D, Dreamworks CEO Katzenberg said their year could be the best they've ever had, with their upcoming release of How to Train Your Dragon, Shrek Forever After and Megamind, all of which will be offered in 3-D
 
Although there has been a lot of fighting between studios and owners of theaters over the declining time between when a movie is released and when the DVD is offered, Katzenberg said as far as Dreamworks is concerned, they're happy with the way things are working out now, and have no plans to change the format at this time.

One thing to be wary of with Avatar and 3-D, is Avatar was the first and had the type of buildup and exposure that will only happen once in the industry. The new is already off and stories will still have to drive the market just like they always have.

So while 3-D will be important to Dreamworks, it's probably more important that they're offering three new films this year than the single one they did in 2009.