DreamWorks Animation SKG Inc. posted strong first quarter financial results as it prepares for its acquisition.
Revenue increased 14 percent to $190 million during the quarter ended March 31 for the Glendale-based studio, which will be acquired by Comcast Corp. for $3.8 billion by year’s end, according to the company.
DreamWorks posted net income of $13.8 million (16 cents a share) in the quarter, which substantially beat consensus Wall Street estimates of -.01 cents a share, according to reports.
While revenue for the quarter’s feature films segment were down nearly 27 percent from last year, all other segments showed growth.
The television series and specials unit posted a 215 percent increase to nearly $57 million. The studio’s new media division – which includes AwesomenessTV and will be helmed by DreamWorks Animation Chief Executive Jeffrey Katzenberg following the acquisition – also soared with a 243 percent increase in revenue to $15 million.
On a call with investors, Katzenberg reiterated that last week’s announcement of the company’s acquisition brings “significant value” for its shareholders. Under the terms of the deal DreamWorks Animation stockholders will receive $41 in cash for each share of common stock.
He also noted that between now and then it’s “business as usual,” echoing the reported sentiments shared in this morning’s town hall meeting with employees and Comcast executives at the DreamWorks Animation headquarters. Comcast Chief Executive Brian Roberts reassured staff that the studio would stay in Glendale after the purchase, and will continue to make animated films that will be “celebrated and marketed and promoted and enjoyed” by its new corporate parent.
“Even though DreamWorks has had their ups and downs as of late, they still have a myriad of talented people working for them,” said Mark Young, professor at USC’s Marshall School of Business. “DreamWorks wins because they have a major conglomerate with deep pockets that can fund their projects, which will be necessary if DreamWorks wants to go to the next level with technologies like virtual reality.”
