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DreamWorks Animation Takes $57 Million Hit on 'Mr. Peabody & Sherman'

6/17/2014

By Lucas Shaw
TheWrap

DreamWorks Animation took a $57 million write-down due to the box office struggles of "Mr. Peabody & Sherman," the company said Tuesday in its earnings report for the first quarter of fiscal year 2014. The company lost $42.9 million in the quarter, which amounts to $0.51 per share.

"Peabody" has grossed $261 million at the worldwide box office – a large sum, but not enough for a movie that cost more than $120 million to produce and millions more to market.

The movie contributed just $3 million in revenue this quarter, but the costs accrue in the lead-up to the movie's release.

"The box office shortfall of 'Mr. Peabody & Sherman' is evidence of the current challenges we face within our feature film segment, and restoring the strength in our core business is my number one priority today," DreamWorks Animation CEO Jeffrey Katzenberg told TheWrap. "Our next film is 'How to Train Your Dragon 2' on June 13, 2014, and I am confident that its performance will put us back on-track to once again reach the levels of box office success that we've achieved historically."

Though weakness in the company's film division is hurting its share price,  movies still contribute the vast majority of the company's revenue. The film segment accounted for $110.1 million of the $147.2 million DreamWorks Animation generated in the quarter.

The post DreamWorks Animation Takes $57 Million Hit on 'Mr. Peabody & Sherman' appeared first on TheWrap.

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