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DreamWorks Animation SKG (NYSE: DWA), announced a Q4 net loss of $21.3m (20 cents a share) compared to positive income of $63.2m (61 cents) in the prior year.  Sales were up 18% to $204m.  The loss was less than the average analyst expectation.
For the full year profit was down 86% to just $15.1m from $104.6m in 2005. 

In an ironic decision, given the title of the movie involved, the company lowered the value of its Flushed Away production by $109m after the movie’s British style humor failed to woo US audiences in theaters.  As a result of the failure, and past write-downs for Chicken Run (2000) and Wallace & Gromit (2005), which came from the same partnership, DreamWorks ended its partnership with UK based Aardman Animation Ltd.

With production costs on animated features exceeding $100m on average, plus marketing expenses upwards of $125m write-downs for under performing features can be a large drag on earnings. The release of Shrek 3 in May and Bee Movie later in 2007 are expected to provided upside.

With the release of earnings, DreamWorks Animation also announced a $150m stock buyback.  Paul Allen, of Microsoft fame, remains the company’s largest shareholder with approximately 21m shares, an amount equal to roughly 25% of the equity.

More detailed press coverage of DreamWorks Animation’s finances can be found at:

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Blockbuster  (NYSE: BBI, BBI.B), reported Q4 earnings.

For the quarter, net income was down to $12.9m ($.05/share) from $18m ($.09/share).  Revenues increased 1.4% to $1.51b.  Online subscribers increased by 700k during the period.  Operating income totaled 445.8m, down from $57m in the prior year.

For the full year, 2006 revenues decreased 3.5% $5.52 billion – attributed by the company to the closing of stores.  Operating income for the year was at $79.1m,  versus a loss of $388m in the prior year (which included a $341m non-cash charge).

More detailed press coverage on Blockbuster’s finances can be found at:

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Marvel (NYSE: MVL) , owner publisher and licensor of the Marvel comic book character library, report weak Q4 earnings.  

Net income was down 14c a share to $11.7m from $25.9m the prior year.  Toy and publishing segments were up, but the licensing division was a drag on earnings.  4th quarter net sales were only $25.5m down from $81.7m last year.  Among that decrease, Marvel’s joint venture with Sony for the Spider-Man franchise provided sales of only $600k off of $4.3m in the prior.  As a positive note, however, the May release of Spiderman 3 should bring positive results in the coming quarters.

Also of interest, Marvel has secured $500m in financing to build their own internal film unit which will allow them to release movies without the revenue share needed in a joint venture.  This both increases the company’s risk exposure but also its potential revenue upside.  Iron Man and Hulk 2 are due to be the first tiles for release from this in house studio with likely targets set for summer/winter 2008.

More detailed press coverage on Marvel’s finances can be found at:

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Tribune Co (NYSE: TRB), reported its summary of revenues and advertising revenue for its so-called Period 1 ended Feb 4. 

Publishing Revenues were down 6% in January tp $345m.  Circulation revenues were down 5.2%. Advertising revenues were down 7.3%.  Consolidated revenues were down 5% from last years $465m. 

In the broadcast and entertainment division revenues in January were down 1.4% off $98m last year.

The company continues to work through its defined “Self Help” plan.  Some properties are being divesting and there are regular rumors and discussions about larger scale changes including strategic investment or buyout.

More detailed press coverage on TRB’s finances can be found at:

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Lionsgate (NYSE: LGF), the maker/distributor of television, movie and music content including popular programming like Showtime’s Weeds, announced results of Q3 on Tuesday (year end results due in early April) .  

For the quarter ended Dec 31, 2006, revenues were up 11% to $254.5m.  Operating income was up 270%.  International revnue was up 90%.  Home movie and theatrical operations saw single digit revenue declines but free cash flow increased by well over 100% to $50.7m

Sequels do out later in the year to its Saw and Hostel movie franchises are expected to provide solid growth for the company.  Rumors of the company being a potential acquisition target are encouraged by their positive growth.

More detailed press coverage on Lionsgate’s finances can be found at:

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Disney  (NYSE: DIS), reported strong Q1 earnings with help of big DVD sales for Cars and Pirates of the Caribbean: Dead Man’s Chest.

For the first quarter, ended Dec. 30, net income was more the double, buoyed by gains from the sale of interests in E! Channel and Us Weekly for $1.1b.  Excluding that transaction revenue, Q1 revenue was up 10% to $9.7b and earnings per share were up $0.15 over the prior year to $0.50 a share.

The movie studio had operating income of $604m over $128m last year. 
Outlook for the coming year is strong with another Pirates sequel and other Pixar productions do for release.

Profits for the media divisions rose to $750m, up 24%.

More detailed press coverage on Disney’s finances can be found at:

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DirecTV  (NYSE: DTV), reported Q4 earnings and met estimates of $0.29 share.

Net income almost tripled to $356m.  Subscriber growth was 38%, churn was down 1.57% do to stricter credit requirements for new customers.  Average monthly revenue for subscribers climbed to $80.70, an increase of almost $5.

More detailed press coverage on DirecTV’s finances can be found at:

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