Profit Down at DreamWorks Animation

October 30, 2013 World Screen
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GLENDALE: DreamWorks Animation reported net income of $10.1 million for the third quarter, down nearly 59 percent from last year, on revenues of $154.5 million, which were 17-percent lower than Q3 2012.

The TV series and specials segment contributed revenue of $18.2 million and gross profit of $4.2 million. This was primarily led by Classic Media content and DreamWorks Dragons: Riders of Berk on Cartoon Network.

In the feature film arena, revenue was $120.7 million and gross profit was $55.4 million. Library titles contributed $52.2 million. The results reflected the weak performance of Turbo; the film cost $127 million to make and contributed revenue of $6.4 million for the third quarter. However, The Croods has generated $587 million in worldwide ticket sales. The film contributed $4 million to feature film revenues for the quarter at DreamWorks Animation.

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The consumer products segment generated revenue of $12 million and gross profit of $3 million.

"Strength in our feature film segment is the single largest driver of our positive third quarter earnings," said Jeffrey Katzenberg, the CEO of DreamWorks Animation. "It also continues to propel new areas of growth for DreamWorks Animation as we have now transitioned into a global, diversified family entertainment company."

"We are introducing four new reporting segments—feature films, television series and specials, consumer products and all other—to align with the ways in which we operate DreamWorks Animation's business today," added Lew Coleman, the chief financial officer of DreamWorks Animation. "Our financial reports will now include revenue and gross profit contributions from these segments, which we believe will also serve to provide more detail behind our growth and diversification efforts going forward."