Despite the worldwide success of the animation film “Home”, Hollywood studio DreamWorks Animation SKG Inc has not had a good first quarter, having registered losses even greater than analysts had predicted, reaching $54.8 million. But can “Home” save DreamWorks Animation from further loss?
There was even more bad news for DreamWorks, that had a decrease in share value of 64 cents per share in this first quarter, even worse than last year’s first quarter that registered a loss of 51 cents per share. The value was a lot smaller than what analysts had expected it to be, having predicted a loss of 45 cents per share.
The reasons behind these lower than expected results include two failed mergers, a massive amount of restructuring alterations, the box office crash that was ” The Penguins of Madagascar” and continuous steep costs for YouTube-based “AwesomenessTV”.
It seemed that the only thing that DreamWorks Animations had going for them this first quarter was the film “Home” that turned out to be a success at the box office upon its release on March 27th. It looks like the only thing that could save the company is none other than Sheldon!
The star of the animation feature is Jim Parsons, the actor who plays beloved character “Sheldon” on the popular TV show “The Big Bang Theory”, for which he has received several Emmys. It was the “Sheldonian” charme of “Oh”, the main character of “Home” and the foxy coolness of “Tip”, voiced by pop star Rihanna who stole the show and brought it home for DreamWorks.
The film grossed over $299 million worldwide until April 29th, but since it cost DreamWorks about $270 million to make the film, it still has a long way to go, so thankfully, the film is still going strong!
Having registered one of the biggest openings in the US since “Madagascar 3: Europe’s Most Wanted” hit the theatres back in 2012 and came home with $60.3 million in its opening weekend.”Home” came second to Madagascar and brought DreamWorks $54 million.
It was “Home” that heavily contributed to the revenue rise of 13% the animation studio registered, reaching $166.5 million, even more than the $164.5 million that analysts were expecting.
The DreamWorks Animation Studios are a spinoff from Stephen Spielberg’s DreamWorks Studios, that opened its doors in 2004 and brought to life genre classics like “Kung Fu Panda”, “How to train your dragon”, “Shrek” and “Madagascar”, arguably the best animations to hit the screens in the last ten years.
But if initially it was the biggest studio of its kind, due to how popular animation became this past decade, most studios heavily invested in animation sectors, thus becoming strong contenders for DreamWorks. The financial issue with this type of one sided studio, market wise, is that is has a discontinuous earnings rate.
It earns a lot when a film is released, provided that it all goes as planned, but then it takes quite some time until the next film is released and can bring in any money. Furthermore, the cost of an animation film the size of DreamWorks Animations’ productions is enormous and thus every investment made in a film is a make it or break it situation.
For now, DreamWorks Animation is still reaping the glory of “Home” and hopes to get good feedback from teenage girls oriented YouTube channel, AwesomenessTV, while still coping with losses in pretty much all the other fields. Can “Home” save DreamWorks Animation from further loss? It looks like that just might be possible thanks to the oddly adorable Jim Parsons, but only the results of the second quarter will tell us for sure.
Image Source: cdn.collider.com
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