DreamWorks Announce Profit Hike from Shrek

Posted on Oct 26 2010 - 11:04pm by Richard Sharp

Dreamworks Animation, the guys who have made modern greats like Bee Movie, Shrek, Kung Fu Panda and Over the Hedge have announced its best ever grossing film and the impact this has had on their share price.

DVD sales on the whole are actually the lowest they have been in years but DreamWorks has managed to increase their share price by 5 percent in the last quarter. They say this increase is largely due to the box office success of Shrek Forever after, its highest grossing film to date.

Wedbush Morgan Securities expert Michael Pachter said: “Overall, the Street had underestimated the international performance of ‘Shrek Forever After”.

The company released figures up to the 30th September 2010, they say they profits rose to a yearly high of $39.8 million – which equals 47 cents per share. If you compare this to the same period in 2009 you would notice an increase in revenue of 40%.

DreamWorks must be feeling pretty confident for the final quarter of the year as they released ‘How to train your Dragon’ on DVD last week. Since October 15th a reported 1.9 million copies were sold in the first three days with Christmas around the corner. This is an astonishing increase from previous movies, a good example would be the blockbuster Kung Fu Panda which only sold 600,000 copies during the first three days of release in 2008.

It’s certainly looking rosy for the animation company, what’s your favourite DreamWorks production?

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