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Friday, Jun 2, 2023

DreamWorks Revenue Drops on ‘Turbo’

Revenue and earnings fell at DreamWorks Animation SKG Inc. in the third quarter, as the high-profile movie “Turbo” failed to meet expectations. The Glendale animation studio reported net income of $10.1 million (12 cents a share) for the quarter ending Sept. 30, compared with $24.4 million (29 cents) in the same period a year earlier. Revenue dropped 17 percent to $154 million. Still, the firm beat analysts’ expectations of 1 cent per share on revenue of $140 million, according to Thomson Financial Network. Driving the weak quarter was “Turbo,” the animated movie about a snail that wants to compete in car racing. The movie debuted in July and only made about $6.5 million toward the company’s feature film revenue. By comparison, last year’s release “Madagascar 3” earned the company $47 million. One of the highlights in the quarter was the release of the 2012 “Rise of the Guardians” film on pay TV around the globe. That added about $42 million in revenue for the third quarter. “Strength in our feature film segment is the single largest driver of our positive third quarter earnings,” said Chief Executive Jeffrey Katzenberg, in a prepared statement. “It also continues to propel new areas of growth for DreamWorks Animation as we have now transitioned into a global, diversified family entertainment company.” Shares gained 25 cents, or almost 1 percent, to close at $27.82 on the Nasdaq.

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