But the company failed to meet investor expectations, in part because of higher costs, disappointing results for the film “Megamind” and unprofitable ventures such as “Shrek: The Musical” and the online Kung Fu Panda virtual world.
“Megamind” grossed $320 million in the theaters at a time when blockbusters gross twice as much.
The movie is scheduled for release on home video today.
“With a successful home video release, we do expect ‘Megamind’ to be profitable,” Katzenberg said.
He expressed confidence that computer-generated animation and 3-D films will continue to be vital to the movie market. With a $5-million investment in 3-D movies last year, Katzenberg said the studio realized incremental revenue of $100 million from higher ticket prices.
But he also said the studio will more carefully time the release of animated films in an increasingly competitive market.
“More than ever we are determined to have each film have the adequate time to realize its potential,” Katzenberg said.
He said the industry slide in home video sales, spurred largely by the success of Netflix, remains a conundrum for DreamWorks and otherstudios.
“Every three to four to five months, it is a different equation for us and everyone else,” Katzenberg said.
The studio’s next big release, “Kung Fu Panda 2,” is slated for May.