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DreamWorks Animation reported $204.3 million in revenue for the fourth quarter, down from $264.7 million, and earnings per share of 20 cents, less than the 33 cents per share analysts had predicted as its film Turbo didn’t live up to expectations.
The animation studio said it took a $13.5 million impairment charge related to Turbo, which cut about 12 cents from its per-share earnings. The company also took a $6.7 million impairment charge for “other content” and that action knocked 6 cents per share from earnings.
The stock rose 1 percent on Tuesday to $35.20 but was down more than 6 percent in after-hours trading.
The studio said its feature film segment contributed $127.9 million in revenue but Turbo, its film about a fast snail, generated only $1.6 million in the quarter. About 3.3 million home entertainment units of the movie had been sold as of the end of the year.
The Croods was the biggest driver of revenue during the quarter, delivering $59.7 million. About 6.7 million home entertainment units have sold thus far.
Rise of the Guardians contributed $8.5 million and Madagascar 3: Europe’s Most Wanted pitched in with $11.4 million. Library titles put up $46.8 million in the quarter.
The company’s television segment contributed $47.1 million in revenue during the quarter primarily from its Classic Media acquisition as well as holiday specials and its Cartoon Network show, DreamWorks Dragons: Riders of Berk.
The consumer products segment contributed $12.4 million in revenue during the quarter and the category of “other,” which includes streaming rights for Shrek the Musical, contributed $16.8 million.
DreamWorks Animation CEO Jeffrey Katzenberg told analysts during a conference call that 2013 was a “very transformational year” that included a distribution deal with 20th Century Fox, the launching of a TV production unit and the close of a deal for Oriental DreamWorks.
Explaining the write-down for Turbo, Katzenberg said it suffered from perhaps the most competitive environment for family films he has ever seen. He predicted, though, that the Turbo franchise will be profitable for years to come, especially given that Turbo FAST is one of the most popular kids’ shows on Netflix.
The studio’s next three films are Mr. Peabody & Sherman on March 7, How to Train Your Dragon 2 in June and Home in November.
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