Shrek the Third: Profitable Blockbuster

February 28, 2008–DreamWorks Animation SKG made a profit in the fourth quarter of 2007, as revenue rose 42 percent from last year hitting $290.2 million due to the sucess of the blockbuster “Shrek the Third.

The company’s net profit reached $94.1 million, or 98 cents per share, up from a loss of $21.3 million, or 20 cents per share, in the fourth quarter of 2006.

Analysts polled by Thomson Financial expected the company to post earnings of 72 cents per share on revenue of $277 million.

“Shrek the Third” raked in $179.4 million in the quarter, boosted mainly by its Nov. 13 release on DVD. It took in nearly $800 million in revenue at the box office worldwide after its May 18 debut.

But overall 2008 earnings would not likely reach monstrous Shrek-like proportions. The franchise has earned $2.1 billion at the box-office since the first film was released in 2001.

For the full year, DreamWorks Animation saw revenue rise 94 percent to $767.2 million and net income soar to $218.4 million, from $15.1 million a year earlier. It was the best annual performance since the company went public in October 2004.

The blockbuster success of the 2007 “Shrek the Third” will make 2008 a difficult year for comparison.