... DreamWorks Animation shares have slid sharply after the company took a $57 million impairment charge against earnings due to disappointing box office results for “Mr. Peabody and Sherman.”
Shares were down 8.8% on Wednesday, falling $2.34 to $24.03. It was the lowest trading level of 2014.
After the market closed Tuesday, the company reported a first-quarter loss of $42.9 million — or 51 cents a share — on revenues of $147.2 million. DreamWorks Animation posted earnings of $5.6 million — or 7 cents a share — on revenues of $134.6 million during first quarter of 2013. ...
I was over at DreamWorks Animation today. Everyone is working away on a plethora of different features. Croods 2, Boo, Home, so on and so on. Nobody seems to be worrying. And as a DreamWorker told me:
The new model is "get the movies completed with a lower budget." If Mr. Peabody and Sherman had been made at the new budget level of $125 million instead of the old budget of $145 million, it would have made money.
Twenty million dollars doesn't sound like a big difference, but it was the difference between the movie being profitable and being a loss. ...
DWA did have sixteen consecutive movies in the profit column. But nobody rides a hot streak forever.
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2 comments:
I take it it's not possible for them to get a smaller budget than $125 mill? That's still a lot more than what other studios spend.
We'll ... Disney has been known to spend as much as $250 million. (The cost for Tangled.)
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