Can’t say that the studio had a good quarter, but Wall Street is all about expectations and on that score it looks OK with shares up 7.8% post market. DreamWorks Animation generated $10M in net income, down 58.8% compared with last year, on revenues of $154.5M, -17%. Analysts expected revenues to come in at $140.3M. Earnings at 12 cents a share also beat expectations for a penny. The company says it will begin to report its numbers for four segments: feature films, TV series and specials, consumer products, and other. The feature film unit generated $120.7M in revenue and $55.4M in gross profit. Library titles contributed the most, with $52.2M in revenues. Rise Of The Guardians came next with $42.4M, mostly from worldwide pay TV. Madagascar 3: Europe’s Most Wanted kicked in $10.9M, followed by the summer release Turbo with $6.4M, and 2011′s Puss In Boots with $4.8M. The TV operation had $18.2M in revenue and a $4.2M gross profit, which the company says came mostly from Classic Media content and Cartoon Network’s DreamWorks Dragons: Riders Of Berk.
Investors who are shocked today by Best Buy’s miserable performance in the quarter that ended in August should take a fresh look at Bernstein Research analyst Craig Moffett’s important studies of what he refers to as the media industry’s “looming affordability crisis.” A report out today, synthesizing some of his recent research, notes that once the poorest 40% of the population pays for food, shelter, transportation, and health care “there is nothing left for clothing…for debt service…for cable…or for phone.” If the government cuts entitlement programs then it would “have a profound impact on spending patterns,” Moffett says, that would lead the media industry into “uncharted waters.”
The box office’s poor performance during the first part of the year has impacted IMAX, too. The giant-screen exhibitor reported first-quarter results this morning that saw revenue and earnings down. “The first quarter lacked event films, particularly compared to the phenomenal strength of last year’s Avatar, and our financial results as compared to last year reflect this,” IMAX CEO Richard Gelfond said. Imax reported a net loss for the first quarter of $1 million, or $0.02 per diluted share, down from $26.6 million last year. Revenue slid from $72.8 million a year ago to $45.2 million.
Imax did boost its outlook for theater installations after saying it signed agreements for 101 theater systems during the first quarter. It also announced that it will expand its credit facility to as much as $110 million, extending the maturity to October 2015.
Time Warner Cable revenue grew 5% to $4.8 billion during the first quarter, the nation’s second-largest cable company said today in reporting earnings, citing gains in subscribers to its high-speed broadband and phone services. Net income grew from $214 million a year ago to $325 million, or 93 cents per share, a figure that beat analyst expectations. Advertising revenue increased 13.9% to $197 million, driven by year-over-year increases in categories like automotive and media. “This is an exciting time for Time Warner Cable,” chairman, president and CEO Glenn Britt said in a statement. “Our high-speed data product just crossed the 10 million subscriber threshold and is quickly becoming the anchor product in the eyes of consumers. At the same time, new technology is making it possible for us to provide an even better video experience to our customers.”