BENGALURU: DreamWorks Animation SKG, (DWA) reported 33.8 percent revenue growth for the year ended 31 December, 2015 (FY-2015, current year) at $ 915.9 million as compared to the $684.6 million. The company says that the increase was driven by year-over-year growth across all core business segments.
For the current year, DWA posted adjusted operating income of $78.8 million. The increase in revenues and segment gross profit was partially offset by an increase in adjusted general and administrative expenses. The increase in adjusted general and administrative costs in the current year was driven by a $37.1 million increase in incentive and stock-based compensation costs and a $16.9 million increase in costs incurred to support the growth and expansion of the AwesomenessTV business. Operating income in the prior year included a $16.5 million benefit associated with a reduction in the fair value of the contingent consideration liability related to DWA acquisition of AwesomenessTV. The reported operating income for the year ended 31 December, 2015, inclusive of restructuring-related charges, was $16.4 million.
Adjusted net income attributable to DWA for the year ended 31 December, 2015 was $7.6 million, or $0.09 per share.
DreamWorks Animation Chief Executive Officer Jeffrey Katzenberg said, “Although 2015 was a transitional year for our company, I am exceptionally proud of what the DreamWorks team has accomplished this year and I’m pleased to report that we have met or exceeded our stated full year 2015 goals across all key financial metrics. DWA delivered its best top line result in 11 years and highest revenue growth in eight years, accelerating 34 per cent from 2014. In addition, our positive adjusted operating income and operating cash flow demonstrate our commitment to profitably grow our businesses while keeping a sharp eye on cost management and productivity improvements.”
Katzenberg continued, “While there is still much work to be done before we cross the goal line on the objectives we shared a year ago, we enter 2016 with considerable momentum. Our continued focus on executing on our strategic goals will not only ensure sustainable and profitable growth over the long term, but create shareholder value for years to come.”
FY-2015 segment numbers
Revenues for FY-2015 from the Feature Film segment increased 14.7 per cent to $520.1 million from $453.5 million, primarily due to higher revenue from prior-year theatrical releases and contributions from the Library. Segment gross profit increased to $190.5 million for FY-2015 compared to a loss of $89.4 million in FY-2014.
Revenues from the Television Series and Specials segment FY-2015 increased 121.5 per cent (more than doubled) to $228.1 million from $103 million, due to higher number of episodes delivered under DWA’s episodic content licensing arrangements. Segment gross profit also increased to $84.5 million in FY-2015, up from $6.7 million in the prior year.
Revenues from the Consumer Products segment in FY-2015 increased to $86.5 million, from $64.8 million in the prior year. The increase was primarily driven by revenues earned from new and extended location based entertainment license arrangements and retail development initiatives in 2015, as well as merchandise licensing arrangements, explains DWA. For the year ended December 31, 2015, segment gross profit increased to $29.9 million, from $23.7 million in the prior year due to higher revenues, partially offset by a one-time expense of $7.0 million related to DWA’s retail development initiatives.
Revenues for FY-2015 from DWA’s New Media segment increased to $72.8 million, from $49.0 million in the prior year. This increase was primarily attributable to revenue generated from licensing and distribution of content, and to a lesser extent, advertising, brand sponsorship and talent management arrangements says DWA. Segment gross profit for FY-2015, was $41.1 million, compared to $17.9 million for FY-2014, primarily due to higher revenue contributions from the licensing and distribution of content, as well as reduced amortization of intangible assets.
Revenues from the All Other segment for FY-2015 were $8.4 million compared to $14.3 million in the prior year. Gross profit was $5.9 million compared to a loss of $5.0 million in FY-2014. Gross profit for the previous year included the write-off of capitalized costs in the amount of $5.4 million.
Q4-2015 numbers
DWA’s fourth quarter revenues (Q4-2015, quarter ended December 31, 2015) of $319.3 million increased 36.3 per cent versus the $ 234.2 million in the corresponding quarter of the prior year, also driven by performance across all core business segments says DWA.
For Q4-2016, DWA posted adjusted operating income of $56.5 million. The increase in revenues and segment gross profit were partially offset by an increase in adjusted general and administrative expenses says the company.
Revenues for Q4-2015 from the Feature Film segment increased to $146.4 million, up from $131.3 million in the prior-year period. Segment gross profit improved to $63.5 million compared to a loss of $152.2 million in the same period of last year.
Revenues Q4-2015 from the Television Series and Specials segment increased to $104.9 million, compared to $50.7 million during the prior-year period. DWA says that the increase in revenues was attributable to a significantly higher number of episodes delivered under DWA’s episodic content licensing deals and an extension of existing licensing arrangements related to the SVOD distribution of DWA’s seasonal television specials. Segment gross profit increased to $46.6 million in the current quarter, from a loss of $(2.6) million in the same period of the prior year.
Revenues from the Consumer Products segment increased to $31.7 million Q4-2015, compared to $22.1 million in the same period last year. The company says that the increase was primarily driven by revenues earned from retail development and location based entertainment initiatives as well as merchandise licensing agreements related to our episodic television series. Segment gross profit decreased to $5.7 million from $6.1 million in the prior-year period as higher revenues were offset by a one-time expense of $7.0 million related to DWA’s retail development initiatives.
Revenues for Q4-2015 from DWA’s New Media segment were $32.9 million compared to $24.9 million during Q4-2014. This increase was primarily attributable to revenue generated from licensing and distribution of content and, to a lesser extent, advertising, brand sponsorship and talent management arrangements says DWA. The segment’s gross profit increased to $20.6 million from $13.2 million in the prior-year period, primarily due to higher revenue contributions from the licensing and distribution of content, as well as reduced amortization of intangible assets.
Revenues from the All Other segment for Q4-2015 were $3.4 million compared to $5.2 million in the prior-year period and gross profit was $2.7 million compared to a loss of $4.0 million for Q4-2014.
