Digital Domain Holdings Loses $USD 25M In 2013

Latest financials have been released for Digital Domain Holdings which is the company that partly own’s Digital Domain:

DIGITAL DOMAIN (00547.HK) announced that in 2013, the revenue rose 153% yearly to $467 million; loss equaled $192 million, against a net profit of $5.95 million in the year-ago period. The loss per share equaled 1.955 cents. No final dividend was declared.

The numbers are in Hong Kong Dollars so the $HKD 192 million loss is about $USD 25 million. This January DDH (earlier known as Sun Innovation) warned that it was going to have some huge losses:

SUN INNOVATION (00547.HK) issued profit warning, projecting significant consolidated loss for the year ended 31 December 2013, due to operating losses incurred from its visual effects business, plus impairment of the participation rights in respect of the film Ender’s Game as at 31 December 2013.

Many in VFX believe co-productions are the answer but as I pointed out, it was very expensive for Digital Domain. Digital Domain minority stakeholder India’s Reliance Mediaworks also suffered massive losses and delisted their stock. There are also serious questions of the suspicious death of China’s Galloping Horse (Digital Domain was sold by GH to Sun Innovations last summer) owner Li Ming who died of a heart attack. It was revealed he was under interrogation.

Soldier On.

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29 Responses to Digital Domain Holdings Loses $USD 25M In 2013

  1. vfxinstinct says:

    next company to go down – DigitalDomain

    • matteobject says:

      Don’t know about “next”, I can think of one or two other studios who could well go down first.

      • vfxmafia says:

        My guess is Prime Focus …..Sin 2 will destroy that place. Didn’t DD get the next Xmen?

      • matteobject says:

        Oh, I completely forgot about Prime Focus, so yeah, that’d be 2 or 3 studios that could bite the dust shortly.

        Definitely curious to see how well they’re getting along with the 2300+ shots of SC 2 – in theory, it’s tailor made for the type of labor force they seem to be pushing.

        … not hearing good things through the grapevine though.

      • animinsider says:

        I’m adding Imageworks/spAnimation to that list. At least as long as the trifecta of terrible leadership is in charge. The talent drain happening there right now is staggering.

  2. rfk says:

    Double detention? Interrogation? I thought we ran a legitimate business blowing things up on film here!

    • vfxmafia says:

      I remember when the producer of Cineasite got marched out in Handcuffs…….or when the DD producer got fired for not falsifying numbers for the IPO……and sued DD for 2 million dollars……i also remember when John Textor faked numbers….defrauded Dan Marino and the state of FLorida….and wrote himself a check for $16 million bonus……and you should see the investors behind some of these new divisions….

      Film has ALWAYS been shady…..where you been?

  3. Whoa says:

    For what it’s worth. I do think co-productions would help more than hurt. It would allow studios the price point they wish to pay for fx work and can potentially share the security in numbers enjoyed by studios these days. However, the “all your eggs in one basket” rule still applies. DDs mistake was that they allowed one production to make or break them. If a studio did that, they would be underwater eventually too. It was a major gamble and they lost it. Any single co production shouldn’t make or break an fx house. But diversifying would very likely be advantageous on the whole.

    • matteobject says:

      VFX houses don’t have the capital to finance multiple productions and FX studios won’t share the profits with any movie that’s a surefire hit.

      VFX *needs* to switch to a cost plus model, now maybe the “plus” is a share of the gross profits, but the underlying costs need to be covered first.

    • Andreas jablonka says:

      To diversity you need capital. Vfx shops don’t make profits so there is no spare capital

  4. Unwarned says:

    Meanwhile, former DDMG employees are still waiting WARN payouts while DDMG has 5.2M cash. http://www.kccllc.net/ddmg/document/1212568140318000000000004

    • Johnnie says:

      Somewhere the conventional wisdom became “co-produce and you’ll make your money back & some” guessing it probably started by someone on the studio side who thought why stop with government subsidies, what about a subsidy from the our fx shops too!

  5. Paul says:

    Ok now please explain why Hydraulix pulled this off with Skyline?

    • vfxmafia says:

      because they stole assets from Sony (im sure you heard about that nasty rumor)……….and im sure they paid for some of the production through Hydraulix profits and shifted cash around….and then they shot the fucking thing at Greg’s apartment building in Marina Delray………

      I wonder why its not a Stanley Kubrick sci-fi level production? I wipe my ass with that movie…….a single episode of Falling Skies had more production value than that…

      • Idiot says:

        I thought it was proven they did not use the assets from the other sony show they were also working on.

      • vfxmafia says:

        I haven’t heard anything about it since the rumors started. All i know is Hydraulix fired everyone…..closed the Santa Monica office and opened up a mocap studio in Marina Del Ray….what they the hell happened to them?

      • Marcus says:

        They moved most of the VFX work to Vancouver is what happened.

      • Shhhhh says:

        Don’t speak facts you don’t know, we have spoken in person about how nothing from Sony was used in Skyline, notice how the suit was dropped? Not that I’m a fan of the place but don’t spread bullshit rumors there is enough bad truth about that place they don’t need help.

        It also didn’t work for Hydraulx, they are struggling bad, have little to no work in LA, Colin the one owner is currently in Australia VFX Suping a film to bring money in. That city hall even Soldier went to a couple weeks ago also had Greg the other brother/owner speaking about how bad things are.

        Most of what they are doing is in VAN, they did move to a new LA location so they can offer a shooting stage.

      • vfxmafia says:

        to shhh….

        they were famous for hiring young talent and working them into the ground. these are the same guys who made loyal employees, after years of service, work ridiculous amounts of OT and the fire them suddenly. Or making people clock out for bathroom breaks…..

        I think Colin and Greg are really talented…but they aren’t model employers…….they are one coke habit and divorce away from being like every other VFX artist in the business…

        Look…i don’t wish bad on them ….i hope they turn around the company. But people have to stop using skyline as the poster child for owning their own IP………..I think Colin and Greg would have been alot better off if they gave up directing and just concentrated on VFX.

  6. This sucks. DD was one of the few companies I really wanted to work for someday because of the tremendous amount of brainpower there. I guess once you get raped by John Textor you never truly heal.

    It’s also a warning to those who think Intellectual Property is the magic answer to everything….

  7. vfxmafia says:

    for all you house of cards fans….the subsidy war just hit the front page of Bloomberg financial news….

    http://www.bloomberg.com/news/2014-03-28/spacey-urges-house-of-cards-tax-break-with-real-lawmakers.html

    • vfxmafia says:

      whats worse is the produciton company hired a known fellon lobbist Gerard Evans (convicted off 9 counts of mail fraud) to procure the subsidiy money from Baltimore politicians…..

      someone needs to throw some of these producers in jail for Hollywood racketering and tax fraud….

      • vfxmafia says:

        they even offered roles in the show to state senators and their wives…..to grease the slimey fucking money…..(this in alot of ways is worse than what happened in Florida)

    • John Crane says:

      tad ironic

  8. Paul says:

    We live in the matrix.

  9. Tiamet says:

    The Chinese government released Li Mings remains to his family for burial only on the condition that no autopsy be performed. Gee, who do you think administered the digitalis that stopped his heart?

  10. Yes! Finally someone writes about lose.

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