Dreamworks 2nd-quarter net income jumps

Dreamworks net income rises in the 2nd quarter, helped by 'The Croods' revenue

Associated Press

GLENDALE, Calif. (AP) -- Animation studio DreamWorks Animation SKG Inc. said Wednesday its net income rose 74 percent in the second quarter, helped by the success of its movies including "The Croods."

Results beat expectations and shares rose almost 5 percent in aftermarket trading.

CEO Jeffrey Katzenberg said results were better than expected due to "The Croods" ''incredibly successful box office run." The movie has made $584 million at the box office worldwide. It follows a prehistoric family that runs into adventures when it's forced to find a new cave.

Fantasy film "Rise of the Guardians," ''Madagascar 3: Europe's Most Wanted," about zoo animals trying to get back to New York, and updated fairy tale "Puss in Boots" also contributed to revenue.

Net income for the three months ended June 30 rose to $22.3 million, or 26 cents per share. That compares with $12.8 million, or 15 cents per share, last year. Analysts expected 20 cents per share, according to FactSet.

Revenue rose 31 percent to $213.4 million from $162.8 million last year. Analysts expected $189.7 million.

Third-quarter results are expected to be driven by pay television revenue from "Rise of the Guardians" and international free television for "Kung Fu Panda 2."

Separately Dreamworks named Marjorie Cohn as its first head of television as it seeks to expand its television presence. Cohn worked at Nickelodeon for 26 years, most recently as president, content development. The television team plans to develop and produce 1,200 new original TV episodes over the next five years.

Mark Taylor will be head of television production. He most recently headed Nickelodeon Animation Studios. Dreamworks executive Peter Gal will become head of television development.

Dreamworks, based in Glendale, Calif., also named Paul Kurzawa to the new position head of retail development and entertainment. Kurzawa was most recently chief operating officer of Caruso Affiliated, a real estate company. The move comes as Dreamworks tries to expand its retail and shopping branded offerings.

DreamWorks also signed a deal to make toys based on its animated movie brands "B.O.O. Bureau of Otherworldly Operations" and "Trolls" properties with toy maker Hasbro. Financial terms were not disclosed. The films will hit theaters in 2015 and 2016.

Shares rose $1.26, or 5.1 percent, to $26.02 in after-hours trading after closing the regular session up 47 cents at $24.76.

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