DreamWorks Animation Posts Q4 Profit25 Feb, 2014 By: Chris Tribbey
Animation studio’s fiscal turnaround driven by both packaged media and digital sellthrough
Higher revenue from its non-feature film segments helped DreamWorks Animation report a fourth-quarter profit of $17.2 million, up from a loss of $82.7 million during the previous-year quarter.
Non-feature-film revenue increased 24%, while disappointing results for animated feature film Turbo resulted in a $13.5 million write-down. DWA said it sold 3.3 million home entertainment units worldwide of the film through the end of the fourth quarter — a tally that didn’t meet projections.
“While it performed fairly well at the international box office, in its home video release it fell short of our expectations,” DreamWorks Animation CEO Jeffrey Katzenberg said during a conference call with investors.
DreamWorks Animation COO Anne Daly said international home entertainment numbers would be reflected in the studio’s first-quarter 2014 results, ending March 31.
“We made significant progress in 2013, transforming and positioning DreamWorks Animation for long-term success as a diversified family entertainment company,” Katzenberg said. “Beyond our feature films, we plan to continue to invest in our television, consumer products, digital and location-based entertainment businesses, where we believe there are significant growth opportunities for our company going forward.”
Daly said the early electronic sellthrough model is working well for the studio, and that the studio plans to continue offering titles on digital weeks before disc.
The feature-film segment contributed revenue of $127.9 million for the quarter. The Croods contributed $59.7 million, with an estimated 6.7 million home entertainment units sold worldwide through the end of the fourth quarter. Rise of the Guardians contributed revenue of $8.5 million to the quarter, with an estimated 5.2 million home entertainment units sold.
Madagascar 3: Europe's Most Wanted sold an estimated 8.8 million home entertainment units worldwide through the end of the fourth quarter, while library titles contributed revenue of $46.8 million to the quarter.