Los Angeles Business Journal

'Turbo' Failed to Boost DreamWorks' Quarter

By Business Journal Staff Tuesday, October 29, 2013

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.