'Home' Is Where DreamWorks Animation's Profit Is5 May, 2016 By: Erik Gruenwedel
DreamWorks Animation’s comedy Home helped the studio return to profitability ($13.8 million) in the first quarter, ended March 31. Revenue increased 14% to $190.4 million, from $166.5 million during the previous-year period.
DWA, which is being acquired by Comcast for $3.8 billion — pending regulatory approval — said it would not hold Q&A sessions with analysts until the acquisition is closed.
“Between now and then, it is business as usual for us,” CEO Jeffrey Katzenberg said on the company's May 5 fiscal call.
Home, which was released at retail last July, generated $18.3 million in quarterly revenue, primarily from international pay television and worldwide home entertainment. The film, which generated $386 million at the box office, has sold an estimated 6.9 million discs globally, including 193,000 discs this year for $63 million in total retail sales, according to The-Numbers.com.
Penguins of Madagascar contributed revenue of $1.6 million, primarily from worldwide home entertainment. Through the end of the quarter, the film has sold an estimated 4.6 million home entertainment units
How to Train Your Dragon 2 contributed feature film revenue of $1.9 million, due to global home entertainment. The film has sold an estimated 9.7 million home entertainment units globally.
Library titles contributed revenue of $41.6 million, driven by licensing arrangements for SVOD distribution of certain titles, as well as worldwide television and home entertainment revenues for a number of titles, including Mr. Peabody and Sherman.
DWA’s notable theatrical release Kung Fu Panda 3 has generated $514 million at the global box office through its theatrical and home entertainment distribution agreement with 20th Century Fox. The studio expects Fox to recoup marketing and distribution costs on Panda 3 and begin generating incremental revenue during the current second quarter. As a result, DWA realized just $26 million in revenue from the movie based on territories outside of the Fox distribution agreement.
“When all is said and done, the film's ultimate profitability will depend significantly on … home entertainment sales,” CFO Fazel Merchant said on the call.
Panda 3 will be released digitally May 13 and on Blu-ray Disc and DVD June 28.