May 28 (Bloomberg) -- DreamWorks Animation SKG Inc., the maker of “Shrek” movies, will produce more movies annually to increase revenue from theaters, television and licensing.

The company, which typically produces two films a year, will make three movies in 2010 including “Shrek Forever After,” and will have the same number of releases in 2012, Chief Executive Officer Jeffrey Katzenberg said today at Cowen & Co. investor conference in New York.

DreamWorks Animation will begin producing three movies every year “in the foreseeable future,” Katzenberg said. The additional movies will also help increase the company’s home video, stage and merchandise businesses.

“We have more great ideas in development and more people working on them then ever before,” Katzenberg said. “We now have more ideas and creative firepower than we can utilize under a two-picture release schedule.”

DreamWorks Animation, based in Glendale, California, rose 7 cents to $27.23 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have gained 7.8 percent this year.

In addition to “Shrek,” DreamWorks Animation next year will release “How to Train Your Dragon” and “Oobermind,” a film formerly called “Mastermind.” A sequel to last year’s “Kung Fu Panda” and a movie tentatively titled “The Guardians” will be in theaters in 2011.

The following year DreamWorks Animation will release “Puss in Boots,” based on the feline “Shrek” character, and a new “Madagascar” movie. The company will also produce one of three tentatively titled projects in development, “The Croods,” “Truckers” and “Super Secret Ghost Project.”

To contact the reporter on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net

Last Updated: May 28, 2009 16:36 EDT