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Visual Effects and Animation Leader DNEG Announces Business Update

Company Outperformed Target Revenue for the Year Ended March 31, 2022

Company Saw Revenue of $409.3 million, Net Income of $39.3 million and Adjusted EBITDA of $100.6 million

Revenue Increase of 33.5% Driven by Healthy Growth in Demand for Content

DNEG, a leading technology-enabled visual effects (VFX) and animation company for the creation of feature film, television and multiplatform content, today announced a business update for the year ended March 31, 2022.

Selected DNEG highlights include:

  • For the full-year ended March 31, 2022, DNEG generated revenue of $409.3 million, Net Income of $39.3 million and Adjusted EBITDA of $100.6 million, equating to year-over-year growth of 33.5%, 214.7% and 22.4%1, respectively.
  • Net Income margin equated to 9.6% and Adjusted EBITDA margin equated to 24.6%1 for the year.
  • DNEG revenue increase of 33.5% in FY2022, ended March 31, was driven by healthy growth in demand for content.
  • DNEG’s percentage of recurring revenue coming from customers from which revenue was generated in the prior year was 95%.
  • At the end of FY2022, DNEG saw more than $505 million in total order book and order pipeline, and has grown to over $700 million as of June 14, 20222. This growth was primarily the result of new project confirmations and additional bidding momentum.
  • Selected recent project deliveries included “Stranger Things” Season 4, Uncharted, Sonic The Hedgehog 2, “The Gilded Age,” The Lost City, “Our Flag Means Death,” The Adam Project and The Matrix Resurrections.

These outstanding results follow a series of significant recent announcements from DNEG including:

  • A multi-year deal extension and renewal of DNEG’s VFX services agreement with Netflix through 2025; a significant expansion of its previous agreement.
  • Current and upcoming projects set to debut in 2022 include Bullet Train, Shazam! Fury of the Gods, Borderlands, Glass Onion: A Knives Out Mystery, The School for Good and Evil, Devotion, “Super/Natural,” Black Adam and “The Witcher: Blood Origin.”
  • Upcoming 2023 projects include live-action / computer-animated feature film Coyote vs. Acme, Aquaman and the Lost Kingdom, Haunted Mansion, The Flash, Meg 2: The Trench, “The Last of Us,” and animated feature Nimona.
  • A digital production award by Locksmith Animation for its second animated feature film That Christmas. This follows DNEG Animation and Locksmith Animation’s collaboration on the companies’ debut animated feature, 2021’s Ron’s Gone Wrong.
  • The announcement of DNEG Animation as exclusive animation studio and producer of new animated feature Garfield, alongside partners Alcon Entertainment.
  • An official opening of DNEG’s previously announced studio in Toronto, with Mayor John Tory in attendance and an announcement that more than 150 personnel had already been already hired. The Company also revealed significant progress in its aggressive Canadian expansion efforts, with more than 1,500 employed across Canada.
  • The 2022 Best Visual Effects Academy Award® for its work on Dune, marking its seventh Oscar®, and sixth win in the last eight years. Its work on the feature film No Time To Die was also nominated.
  • Its seventh BAFTA award for Dune; DNEG projects had four of the five BAFTA nominees for Best Visual Effects in 2022. The Company also won seven Visual Effects Society (VES) awards in 2022, bringing DNEG’s lifetime total to 18.



For a definition of Adjusted EBITDA and Adjusted EBITDA margin and reconciliation of Adjusted EBITDA to net income please see “Non-GAAP Financial Information” below.


Order book and order pipeline is one of DNEG’s Key Performance Indicators, and not necessarily indicative of its future revenue or other results of operations. DNEG’s order book is comprised of (i) projects for which it has received a written contract, either executed or awaiting execution, and (ii) projects for which it has received written or verbal confirmation that it has been awarded a particular project and for which commercial terms are either agreed or generally known due to our course of dealing with a particular customer. DNEG’s pipeline comprises projects that are in an advanced stage of active bidding and discussion, including potential change orders for current projects, but for which the customer has not yet confirmed the commercial terms, the value of the contract and/or the scope of the work. Excludes projects from DNEG’s other production services segment.

As previously announced, DNEG entered into a Business Combination Agreement with Sports Ventures Acquisition Corp (“Sports Ventures”), a publicly-traded special purpose acquisition company (Nasdaq: AKIC), in January, 2022.

Sports Ventures has filed a Proxy Statement with the SEC in connection with its proposed business combination with DNEG, which is currently expected to close in the second quarter of 2022, subject to shareholder approval, and other customary closing conditions. Additional information can be found on the Securities Exchange Commission’s website at or on DNEG’s Investor Relations website at

About DNEG

DNEG ( is one of the world’s leading visual effects (VFX) and animation companies for the creation of feature film, television, and multiplatform content. DNEG employs nearly 7,000 people with worldwide offices and studios across North America (Los Angeles, Montréal, Toronto and Vancouver), Europe (London) and Asia (Bangalore, Chandigarh, Chennai and Mumbai).

DNEG’s critically acclaimed work has earned the company seven Academy Awards® for Best Visual Effects and numerous BAFTA and Primetime EMMY® Awards for its high-quality VFX work. Current and upcoming DNEG projects on behalf of its Hollywood and global studio and production company partners include Bullet Train (July 2022), Black Adam (October 2022), Devotion (October 2022), Shazam! Fury of the Gods (December 2022), Borderlands (2022), Glass Onion: A Knives Out Mystery (2022), The School for Good and Evil (2022), “Super/Natural” (2022), Aquaman and the Lost Kingdom (March 2023), Haunted Mansion (March 2023), The Flash (June 2023), Meg 2: The Trench (August 2023), Nimona (2023), and “The Last of Us” (2023).

About Sports Ventures Acquisition Corp.

Sports Ventures Acquisition Corp. is a blank check company organized with the purpose of effecting a merger similar business combination with a major entertainment powerhouse. Sports Ventures Acquisition Corp. is led by Alan Kestenbaum, businessman and minority owner of the Atlanta Falcons of the NFL. Other leadership members include Robert Tilliss, who brings with him extensive sports and arena expertise, Daniel Strauss, and Steve Horowitz.

Additional Information About the Transaction and Where to Find It

This communication may be deemed to be solicitation material with respect to the proposed transaction for Sports Ventures Acquisition Corp. to acquire Prime Focus World NV. In connection with this proposed transaction, Sports Ventures Acquisition Corp. will file relevant materials with the SEC, including a proxy statement on Schedule 14A. This communication does not contain all the information that should be considered concerning the proposed transaction. It is not intended to provide the basis for any investment decision or any other decision in respect to the proposed transaction. STOCKHOLDERS OF SPORTS VENTURES ACQUISITION CORP. ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain the documents free of charge at the SEC’s web site,, and Sports Ventures Acquisition Corp. stockholders will receive information at an appropriate time on how to obtain transaction-related documents free of charge from Sports Ventures Acquisition Corp. Such documents are not currently available.

Participants in Solicitation

Sports Ventures Acquisition Corp., Prime Focus World NV and their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from the holders of Sports Ventures Acquisition Corp. Class A Ordinary shares in respect of the proposed transaction. Information about the directors and executive officers of Sports Ventures Acquisition Corp. and their ownership of Class A Ordinary shares are set forth in its Annual Reports on Form 10-K, which was filed with the SEC on March 30, 2021, and its Reports on Form 8-K, which were filed with the SEC on April 6, 2021 and January 12, 2022, as modified or supplemented by any Form 3 or Form 4 since the date of that filing. Investors may obtain additional information regarding the interest of such participants by reading the proxy statement regarding the proposed transaction when it becomes available.

Prime Focus World NV and its directors, executive officers and employees may also be deemed to be participants in the solicitation of proxies from the holders of Sports Ventures Acquisition Corp. Class A Ordinary shares in respect of the proposed transaction. A list of the names of such directors, executive officers and employees and information regarding their interests in the proposed transaction will be included in the proxy statement for the proposed transaction when available.

No Offer or Solicitation

This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.

Non-GAAP Financial Information

This press release includes financial measures not presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”) including Adjusted EBITDA, Adjusted EBITDA margin and other metrics derived therefrom. We define Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and the other items identified in the table below.

We believe that these measures provide an additional way of viewing aspects of our operations that, when viewed with the U.S. GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. However, non-GAAP financial measures should be considered a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with U.S. GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP measures used by other companies, including our competitors. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure. The following table provides a reconciliation of net income, the most directly comparable U.S. GAAP financial measure, to Adjusted EBITDA:


($ in millions)


For the Year Ended

March 31, 2022

Net income




Interest expense, net




Tax expense




Depreciation and amortization




Stock compensation expense(1)




COVID-19 related costs(2)




Capital raising costs(2)




Adjusted EBITDA




Net income margin




Adjusted EBITDA margin(3)






Represents non-cash charges related to stock compensation expense.


Represents non-recurring costs incurred in connection with capital raising activities and costs related to the COVID-19 pandemic. Please refer to the proxy for further description.


Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue.

Forward-Looking Statements

This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact contained in this communication including, without limitation, statements regarding Sports Ventures Acquisition Corp.’s or Prime Focus World NV’s financial position, expected operating performance, business strategy and the plans and objectives of management for future operations; anticipated financial impacts of the proposed transaction; the satisfaction of the closing conditions to the proposed transaction; and the timing of the completion of the proposed transaction, are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that any such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of Prime Focus World NV, Sports Ventures Acquisition Corp. and their respective business, operations, financial condition and the industries in which they operate, the risk that the proposed transaction between Prime Focus World NV, and Sports Ventures Acquisition Corp. may not be consummated, and the factors described in the Sports Ventures Acquisition Corp.’s filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein. Prime Focus World NV and Sports Ventures Acquisition Corp. each disclaim any obligation to update any forward-looking statements contained herein.


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