DreamWorks posts bigger than expected first-quarter loss
DreamWorks Animation SKG Inc posted a bigger than expected first-quarter loss on Thursday because of restructuring charges as the studio continues to downsize.
The company’s selling and administrative expenses surged by 87 percent in the first quarter, primarily because of costs associated with the expansion of its AwesomenessTV business and marketing a new TV series.
The Glendale-based company, known for blockbuster film franchises such as “Shrek”, “Kung Fu Panda”, and ”Madagascar”, reported a net loss of $54.8 million (-64 cents a share) for the quarter ended March 31, versus a net loss of $43 million (-51 cents a share) in the same period last year.
Revenue was higher than expected, rising 13 percent to $166.5 million. This was largely thanks to the successful release of “Home” and revenue from its “How to Train Your Dragon” franchise.
Revenues for the quarter ended March 31, 2015 from the Feature Film Segment increased to $128.0 million, up from $110.1 million in the prior year period.
The movie “Home” was one of the best openings for an original movie made by DreamWorks, logging more than $54 million in its opening weekend.
DreamWorks said on Thursday that as of April 30, the movie “Home” had grossed about $308 million worldwide.
Chief executive and founder Jeffrey Katzenberg said:
“While 2015 is a transitional year for us, the worldwide box office performance of ‘Home’ serves as early evidence that the changes we’re making in the core feature animation business are working,”
In recent years DreamWorks has struggled with film releases, such as releases the movies “Penguins of Madagascar,” “Turbo” and “Rise of the Guardians”, which all disappointed at the box office, leading to writedowns.
According to Thomson Reuters I/B/E/S, analysts had expected a loss of 45 cents per share and revenue of $164.5 million.
DreamWorks shares dropped by 0.61 (2.29%) during trading hours on Thursday. In after-trading hours shares dropped a further 2.15%.