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DreamWorks Animation's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: DWA

As we mentioned on our last earnings call, as a result of the Summer Olympics, a good portion of Madagascar 3’s international release won’t occur until later this year. So already the film has been a massive commercial and critical success and it still has a long way to go. Also, I am happy to report that 50% of Madagascar 3 worldwide box office receipts have come from 3D which continues to be an important and successful investment for us.

Our next release, Rise of the Guardians will be in November. We have debut two trailers so far and audience feedback of the characters, the breadth and the originality of the story and the visuals have been exceptional; we look forward to seeing how it performs on November 21st.

Beyond our core business, we are committed to growth and diversification of DreamWorks Animation more today than ever before. We are focusing on three key areas of investments. The first is you ongoing character driven efforts which include TV series and live entertainment. We are currently producing Dragons, Riders of Berk, DreamWorks Animation’s third TV series and our first that we will air on Cartoon Network.

Jay Baruchel, America Ferrera and Christopher Mintz-Plasse are all praising their lead roles from the film. We premiered 15 minutes of footage earlier this month at Comic-Con and audience reactions were positive. A sneak-peek of two episodes will air a week from today on Cartoon Network. From a brand building standpoint, we believe a TV series will provide family audiences with high quality content between our Dragon feature film events and help sustain a consumer products program around the franchise.

Turning to live entertainment; last month How To Train Your Dragon Live Spectacular! kicked off its nationwide tour to great critical acclaim. It is perhaps the biggest and most ambitious travelling arena show that has ever been produced and we believe it will set a new standard for this type of live family entertainment.

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