DreamWorks Animation's fourth-quarter earnings drop sharply
DreamWorks Animation saw a sharp decline in profit in the fourth quarter of 2011 compared with a year earlier, reflecting weak holiday DVD sales.
The Glendale studio reported that it earned net income of $24.3 million, or 29 cents a share, in the quarter, versus a profit of $85.2 million, or 99 cents a share, in the fourth quarter of 2010.
Revenue during the quarter totaled $219 million, down 21% from the same period in 2010, DreamWorks reported after markets closed Tuesday.
For the year, the company logged net income of $86.8 million on revenue of $706 million, compared with net income of $170.6 million on revenue of $784.8 million in 2010.
Part of the reason for the decline was that DreamWorks released two movies last year, "Kung Fu Panda 2" and "Puss in Boots," compared with three films in 2010.
DreamWorks recently announced plans to build a studio in Shanghai, which it billed as a landmark agreement with two state-owned Chinese media operations.
Oriental DreamWorks, a joint venture with China Media Capital and Shanghai Media Group in concert with Shanghai Alliance Investment -- an investment arm of the Shanghai municipal government -- is to establish a family entertainment company in China.
With an initial investment of $330 million, the Shanghai studio would develop original Chinese animated and live-action movies, television shows and other entertainment catering to the Chinese market.
-- Richard Verrier
Image: A scene from "Kung Fu Panda 2." Credit: DreamWorks Animation