DreamWorks revenue slumps, takes charge as 'Turbo's' poor run persists

Tue Feb 25, 2014 6:40pm EST
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By Lehar Maan

(Reuters) - DreamWorks Animation SKG Inc's fourth-quarter revenue fell a steeper-than-expected 23 percent due to the continued poor performance of "Turbo" and the lack of a major movie released in the United States in the period.

Shares of the Hollywood studio fell 7.5 percent to $32.55 in extended trading after the company also said it took a charge related to the poor performance of "Turbo."

"Turbo faced one of the most competitive feature film environments we have seen," Chief Executive Jeffrey Katzenberg said on a conference call with analysts.

"While it performed fairly well during the fourth quarter at the international box office and its home video release, it still fell short of our expectations."

"Turbo", an animated movie about a garden snail that races in NASCAR, had a slow start in the U.S. theaters after its release in July pit it against rival studios' films such as "Monsters University" and "Despicable Me 2".

DreamWorks said on Tuesday that it expects its full-year 2014 results to be helped by the release of "Mr. Peabody & Sherman" in March in the United States and "How to Train Your Dragon 2" in June.

The company has released "Mr. Peabody & Sherman" in the UK, France and Argentina to take advantage of the school holidays.

But, the studio does not expect a significant contribution to revenue in the first-quarter from the movie, which is about an animated comedy about a talking genius dog and the boy he adopts.   Continued...

(R-L) Voice cast actors Ryan Reynolds, Snoop Dogg, also known as Snoop Lion, and Samuel L. Jackson pose during the world premiere photocall of their animated movie "Turbo" in Barcelona June 25, 2013. REUTERS/Gustau Nacarino