DreamWorks Animation has had a rough year and it’s only getting worse. The Oscar loss on Sunday night now looks like nothing thanks to today’s Fourth Quarter results.
Jeffrey Katzenberg’s studio posted a $247.7 million operating loss during the 2014 fiscal fourth quarter, which ended on Dec. 31. The studio also took a $57.1 million write-off thanks to the failures of Mr. Peabody and Sherman and Penguins of Madagascar. In addition, the write-off includes production costs from B.O.O. and Monkeys of Mumbai, two still-unreleased films.
The huge operating loss, which offset the $234.2 million in revenues, was mostly thanks to the restructuring announced last month. The studio laid off 500 employees and decided to release only two movies a year, instead of three. (Neither B.O.O. nor Monkeys were included on the schedule announced at that time.)
"Although 2014 was a challenging year for our Company, I am confident that our recent announcement to restructure our feature film business will enable us to deliver great films and better box office results, while improving the overall financial performance of our business," Katzenberg said in a statement. "And while 2015 will be a transitional year for us, I couldn't be more confident for the future. We have a set of strategic imperatives in place designed to ensure sustainable and profitable growth over the long term."
Penguins of Madagascar only grossed $82.6 million in the U.S., but made a $275.3 million overseas. Peabody did a bit better, with $111.5 million in the U.S., but only $161.4 million in foreign markets.
The only bright spot for the studio was Dragon 2, which grossed $618.9 million worldwide. It was nominated for the Best Animated Feature Oscar, but lost to Disney’s Big Hero 6.
DWA's total 2014 revenue was $684.6 million, down 3.2 percent from the year before.
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