Film Production
Q3-2015: Dreamworks Animation YoY revenue up 43% at $259.22 million
BENGALURU: DreamWorks Animation SKG Inc. (DWA) reported 43.3 per cent YoY revenue growth in the quarter ended 30 September, 2015 (Q3-2015, current quarter) at $259.22 million as compared to the $180.86 million, which was driven by performance across all operating segments.
For Q3-2015, DWA posted adjusted operating income of $26.8 million. The increase in revenues and segment gross profit was partially offset by an increase in adjusted general and administrative expenses says DWA.
“DreamWorks Animation delivered solid third quarter results, highlighted by strong top-line growth and meaningful segment gross profit across all of our businesses. While we still have considerable work ahead of us, I am proud of the team’s collective efforts and remain confident that we are well positioned to meet or even exceed our stated goals for the year while continuing to drive long term value for our stakeholders,” said DreamWorks Animation CEO Jeffrey Katzenberg.
Segment Revenue
Feature Film segment
Revenues for Q3-2015 from the Feature Film segment increased to $157.9 million, up from $142.4 million in the prior-year period. Segment gross profit decreased to $54.3 million compared to $64.3 million in the same period of last year, primarily due to contributions earned in the prior-year period in the worldwide theatrical market from How To Train Your Dragon 2, which was a higher margin title.
Home contributed feature film segment revenue of $49.7 million in Q3-2015. Home was released in the digital market on 26 June, 2015 and into the physical domestic home entertainment market on 28 July, 2015. The film reached an estimated 4.7 million home entertainment units through the end of the third quarter, net of actual and estimated future returns claims DWA.
The Penguins of Madagascar contributed feature film segment revenue of $39.8 million in the current quarter, primarily from domestic and international pay television. Through the end of the third quarter, the film reached an estimated 3.6 million home entertainment units sold worldwide, net of actual and estimated future returns.
How To Train Your Dragon 2 contributed feature film segment revenue of $7.4 million in the quarter, primarily from international pay television and home entertainment. The film reached an estimated 8.9 million home entertainment units sold worldwide through the end of the third quarter, net of actual and estimated future returns.
Mr. Peabody and Sherman contributed feature film segment revenue of $2.6 million in the quarter, primarily from home entertainment. The film reached an estimated 4.2 million home entertainment units sold worldwide through the end of Q3-2015, net of actual and estimated future returns.
Television Series and Specials segment
Revenues for the quarter ended 30 September, 2015 from the Television Series and Specials segment increased to $50.7 million in Q3-2015, compared to $14.3 million during the prior-year period. The increase in revenues was attributable to a significantly higher number of episodes delivered under DWA’s episodic content licensing arrangements. Segment gross profit increased to $15.3 million in the current quarter, from $2.3 million in Q3-2014. The increase was primarily driven by higher revenues along with favourable amortisation rates associated with episodic series, partially offset by up-front marketing costs associated with the release of DWA’s new television series.
Consumer Products segment
Revenues from the Consumer Products segment increased to $27 million in Q3-2015, compared to $12.1 million in the same period last year. The increase was primarily due to revenues earned from new and extended location based entertainment license arrangements in the quarter, as well as merchandise licensing agreements related to intellectual property rights associated with characters from DWA’s feature films and episodic television series. Revenues also included contributions from merchandising and other licensing activities. Segment gross profit increased to $15.8 million in Q3-2015 from $4.2 million in Q3-2014, as revenues earned from location based entertainment license arrangements have lower associated costs.
New Media Segment
Revenues for Q3-2015 from the company’s New Media segment were $20.7 million compared to $8.5 million during Q3- 2014. This increase was primarily attributable to revenue generated from licensing and distribution of content and brand sponsorship arrangements. In Q3-2014, DWA reported certain advertising and talent management revenues in this segment on a ‘gross’ basis rather than on a ‘net’ basis. For comparative purposes, if the New Media segment’s revenues had been reported on a ‘net’ basis during Q3-2014, revenues for Q3-2015 would reflect an increase of 226 per cent compared with the prior-year period. Segment gross profit, which is not affected by this item, increased to $10.9 million from $2.3 million in the prior-year period, primarily due to higher revenue contributions from licensed content and reduced amortisation of intangible assets.
All other segments
Revenues from All Other segments for Q3-2015 were $2.9 million compared to $3.6 million in the prior-year period and gross profit was $2.4 million compared to a loss of $1.1million in Q3-2014.
Film Production
Arka Mediaworks onboards 88 Pictures as animation studio partner on ‘The Eternal War – Part 1’
Arka Mediaworks announces that 88 Pictures, the acclaimed animation and visual storytelling studio known for its cutting-edge CGI and cinematic artistry, is on board as the animation partner for the highly anticipated Baahubali: The Eternal War, a groundbreaking two-part 3D animated feature film set in the globally beloved Baahubali universe.
Baahubali: The Eternal War represents a bold new chapter in the Baahubali saga envisioned for national and international audiences and crafted with the ambition of delivering one of India’s most ambitious and globally benchmarked animation projects to date.
88 Pictures will execute the animation production, bringing to life the film’s richly detailed worlds, epic battle sequences, and larger-than-life characters with its signature blend of artistic vision, performance-driven animation, and advanced production pipelines. Working closely with the film’s creative leadership and technical partners, the studio aims to set new benchmarks in animation quality, cinematic storytelling, and global scalability.
This animated epic follows the successful re-release of Baahubali: The Epic (the combined theatrical version of the original live-action films) on 31 October 2025 across India and the USA. During the film’s interval, legendary creator and director S.S. Rajamouli (Baahubali 1 & 2, RRR) stunned audiences with a surprise teaser for The Eternal War – Part 1. The video immediately went viral, garnering widespread national and international acclaim across LinkedIn, Instagram, and YouTube for its ambitious visual style and scale.
Produced by Arka Mediaworks and led by co-founder and CEO Shobu Yarlagadda – producer of the iconic Baahubali duology, The Eternal War brings together fantastic storytelling and cutting-edge animation.. The film is directed and written by acclaimed animation filmmaker Ishan Shukla (Schirkoa: In Lies We Trust, Star Wars: Visions – “The Bandits of Golak”) and screenplay by Scott Mosier (The Grinch). Mihira Visual Labs, the studio co-founded by Yarlagadda anchors the film’s animation, visual development, and execution.
The partnership with 88 Pictures brings significant pedigree to the project; the studio is well-regarded for its work on high-profile international titles including DreamWorks’ series Trollhunters, the HBO Max original series Gremlins: Secrets of the Mogwai, Disney’s animated short An Almost Christmas Story to name a few.
Yarlagadda shared, “We are happy to onboard 88 Pictures as the animation studio partner for our prestigious and most expensive animated film from India. We believe that their expertise and capabilities will allow us to produce a first-of-its-kind, world-class animated feature film from India.”
88 Pictures founder & CEO Milind D. Shinde said, “Baahubali changed the way cinema is perceived and became a defining milestone that turned the tide for Indian live-action filmmaking. Expanding the franchise into an entirely new universe—at a never-seen, never-done scale—through an animated feature created in India for a global audience is set to redefine how the world views Indian animation. We are truly thrilled to be part of this landmark project and to bring it to life under the visionary direction of Ishan Shukla, guided by the experience and leadership of acclaimed producer Shobu Yarlagadda.”
Shukla expressed, “Eternal War requires a level of visual and emotional precision that can only come from teams who truly understand both craft and intent. Working with 88 Pictures, alongside Mihira Visual Labs, has been a deeply collaborative experience. This association brings together technical excellence and creative sensitivity, enabling us to translate an ambitious vision into a compelling cinematic reality.”
Baahubali: The Eternal War – Part 1 is scheduled for release in 2027
