(Source: biz.yahoo.com)
Unlike Disney, DreamWorks Animation did not have a good 2006. In its 4th quarter and year-end report, the studio claimed operating revenue of $204.3 million with a net loss of approximately $21.3 million, or $0.20 per share on a fully diluted basis.
This means DreamWorks' reported revenue for 2006 was $394.8 million and a net income of $15.1 million for 2006, or $0.15 per share on a fully diluted basis.
Included in that was a write-off of capitalized film costs for the DreamWorks/Aardman collaboration Flushed Away, which has made $175 million worldwide. Based on the film's performance to December 31st, 2006, and DreamWorks' projection of future performance, the studio wrote off about $109 million.
"Looking at our 2006 releases overall, Over the Hedge finished as one of the top performing domestic theatrical releases of the year and is performing well in home video," said DreamWorks Animation CEO Jeffrey Katzenberg. "Flushed Away, however, did not meet financial expectations despite critical acclaim. Its performance offset what was otherwise a strong year for the rest of our titles, especially in the home video market."
Over the Hedge's home video sales made $104.1 million for the company. Madagascar added another $36.2 million of revenue from international pay television as well as continued home video sales.
Keeping franchise hopes alive, Shrek 2 earned $31.1 million for the quarter from television and home video catalogue sales, while Shark Tale and Wallace & Gromit: Curse of the Were-Rabbit made $9.5 million and $8.6 million, respectively.
DreamWorks is hoping the summer release of Shrek the Third will boost its fortunes, as well as Jerry Seinfeld's first animated flick, Bee Movie. Bee Movie will only come out November 2nd, which means any revenue it generates will not have much impact on 2007's revenue report.
"We have made a lot of progress this past year improving several aspects of the business and are entering a very exciting time for DreamWorks Animation," said Katzenberg. "With the next chapter in our Shrek franchise, as well as Bee Movie, we have a unique slate of one sequel and one original film that I believe captures the business model that we had envisioned for the company."
