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Tuesday, July 26, 2011

Katzenberg says "Panda" box office "heartbreaking"


LOS ANGELES (TheWrap.com) - After being mired in a stock slump in recent months, DreamWorks Animation announced a stronger than expected second quarter.

Revenues at DreamWorks Animation climbed 38 percent to $218.3 million during the second quarter on the strength of the worldwide box office performance of "Kung Fu Panda 2," the company announced Tuesday.

Profits for the company also increased, rising 42 percent to $34.1 million, or $0.40 per share.

Revenues for the Glendale-based animation studio beat analysts' projections, while profits met their benchmark. A poll of analysts by Thomson Reuters anticipated earnings of 40 cents per share on revenue of $198.2 million.

Shares rose nearly 5 percent in after-hours trading.

"Kung Fu Panda 2," which was released on May 26, 2011, contributed $55.8 million of revenue in the quarter, generated by its worldwide box office performance as well as merchandising and licensing.

The animated sequel's $440 million gross at the international box office was impressive, but on a conference call with investors after the earnings announcement, DreamWorks Animation CEO Jeffrey Katzenberg described the film's $160 million take at the domestic box office as "heartbreaking."

Katzenberg said that the studio miscalculated by positioning "Kung Fu Panda 2" as family friendly counter-programing to "Hangover Part 2."

"I think we had a terrible, terrible calamity in the US and it's heartbreaking because there's no recovering from it," Katzenberg said.

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http://www.reuters.com/article/2011/07/27/industry-us-dreamworks-idUSTRE76Q04A20110727

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