DreamWorks Animation loses $38.6 million in second quarter
Still recovering from a bruising period of layoffs and restructuring, DreamWorks Animation on Tuesday reported a loss of $38.6 million in the second quarter.
The Glendale-based company behind the “Shrek” and “Kung Fu Panda” movies posted a loss of 45 cents a share for the quarter ended June 30, compared with a loss of 18 cents a share during the same period a year ago.
The widening losses included $20.9 million in restructuring-related charges. Excluding the charges, DreamWorks had a loss of $11.6 million, or 13 cents a share, in the quarter, the company said in a statement.
In a bright spot for the studio, however, revenues climbed nearly 40% to $170.8 million as the studio got a boost from its latest animated movie, “Home,” which did better than expected and pulled in $380 million in worldwide ticket sales.
Analysts polled by Thomson Financial had forecast a loss of 26 cents a share and revenues of $166.7 million in the quarter.
“Our second quarter financial results were solid, highlighted by the theatrical success of ‘Home’ and the rapid expansion of our television and new media businesses,” DreamWorks Animation Chief Executive Jeffrey Katzenberg said in a statement. “The appetite for premium content across platforms continues to grow both domestically and internationally, and it’s clear DreamWorks is well positioned to capitalize on the growing demand.”
Television revenues also more than doubled to nearly $55 million compared with a year ago. Revenues from DreamWorks’ new media businesses, which includes the YouTube teen channel AwesomenessTV, climbed to $14.6 million, up from $11.5 million a year ago.
DreamWorks Animation is hoping to turn its business around after a series of box office flops triggered 500 layoffs announced in January, the largest in the studio’s two-decade history.
As part of the restructuring, the company closed its facility in northern California and sold its plush Tuscany-style headquarters in Glendale. DreamWorks has a 20-year lease on the 15-acre property, which was acquired last month by Griffin Capital Essential Asset REIT for $215 million.
Katzenberg has installed a new management team, scaled back the number of movies the studio produces and vowed to focus on reviving the studio’s core feature animation business that produced hits such as the “Shrek” and “Madagascar” films.
DreamWorks’ next movie, “Kung Fu Panda 3,” will be released in January and is expected to generate big returns in China, where the film is being made at a studio in Shanghai operated through a joint venture called Oriental DreamWorks.Twitter:
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