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Tuesday, Jul 1, 2025

DreamWorks’ First Quarter Down on Lack of New Releases

DreamWorks Animation SKG Inc. late Tuesday reported 59 percent lower profit in the first quarter, largely due to the lack of a major theatrical release in the period. The results met Wall Street expectations.

After the markets closed, the Glendale film studio reported net income of $8.8 million (10 cents per share), compared with $21.7 million (24 cents) a year earlier.

Revenue fell 33 percent to $108 million, with most of the sales coming from home video releases of older movies such as “Megamind” and “Shrek Forever After.” The company said it expects a stronger second quarter due to the May 26 release of “Kung Fu Panda 2.”

Analysts surveyed by Thomson Reuters on average expected per-share profit of 10 cents on revenue on $107 million.

“DreamWorks Animation’s first quarter was driven primarily by our 2010 films,” said Chief Executive Jeffrey Katzenberg in a statement. “We now look forward to kick-starting the summer movie-going season.”

Shares closed down 12 cents, or less than 1 percent, to $26.73 on the Nasdaq.

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Deborah Crowe Author