DreamWorks Animation said second-quarter net income soared 42 percent to $34.1 million, or 40 cents a share, mostly on strong international ticket sales for “Kung Fu Panda 2.” Revenue climbed 38 percent, to $218.3 million.
Analysts had expected a profit of 38 cents a share and revenue of $191 million, according to Thomson Reuters. The better-than-expected results sent DreamWorks Animation shares up about 4 percent, to $22.42, in after-hours trading.
Even so, Jeffrey Katzenberg, DreamWorks Animation’s chief executive, was peppered with questions during a conference call about speculation surrounding his company on a number of fronts.
Analysts immediately asked about news reports indicating that DreamWorks Animation was in talks to replace its distribution pact with HBO in favor of an exclusive streaming deal with Netflix. “We’re going to take a pass and punt,” Mr. Katzenberg responded, describing the reports as “gossip and rumors.”
DreamWorks Animation’s distribution deal with Paramount Pictures has also been the subject of recent conjecture in Hollywood. That seven-year partnership expires at the end of next year, and Paramount recently announced plans to create its own animation unit.
Mr. Katzenberg told analysts on the conference call that Paramount’s move into big-screen cartoons “just reaffirms the value and appeal of animation in the marketplace.”
He added, “I don’t see this as quite the issue everyone else is trying to make it.” But he did not divulge any specifics about the company’s approach to any contract renewal talks with Paramount.
The Wall Street crowd also wanted to get to the bottom of the disappointing North American box office performance for “Kung Fu Panda 2,” which took in about $161 million in tickets earlier this summer in the United States and Canada. It was expected to bring in more than $200 million. (It sold a strong $437 million overseas.)
Mr. Katzenberg said releasing “Kung Fu Panda 2” against “The Hangover Part II” turned out to be a “calamity” because unexpectedly large numbers of teenagers and families went to see that R-rated Warner Brothers comedy.
Mr. Katzenberg said that his team had been re-evaluating release dates for coming films and that at least one might change because of similar competition.
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