DreamWorks Reports Surprise Profit as Licensing Revenue Rises


DreamWorks Animation SKG Inc reported a surprise profit for the third quarter as the Hollywood studio earned more from licensing its content and benefited from the DVD and Blue-ray releases of "Home," its only movie this year.

Shares of the company, which also reported a higher-than-expected revenue, jumped about 14 percent in extended trading on Thursday.

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DreamWorks is focusing on strengthening its TV business by signing lucrative licensing deals with video streaming company Netflix Inc.

"Home," released on March 27, will be DreamWorks' only release this year as the company restructures and diversifies its business to counter fierce competition.

Revenue from DreamWorks' movie business rose about 11 percent to $157.9 million, accounting for nearly two-thirds of its total revenue.

Revenue from its TV business more than tripled to $50.7 million.

DreamWorks reported a net loss of $3.5 million, or 4 cents per share, attributable to the company for the quarter ended Sept. 30. DreamWorks had a profit of $11.9 million, or 14 cents per share, a year earlier.

Excluding items, DreamWorks earned 2 cents per share.

Revenue rose 43.3 percent to $259.2 million.

Analysts on average had expected a loss of 5 cents per share and revenue of $206 million, according to Thomson Reuters I/B/E/S.

DreamWorks shares were trading at $23.02 after the bell.

(Reporting by Lehar Maan in Bengaluru; Editing by Kirti Pandey)