DreamWorks Animation Posts Q2 Loss

GLENDALE: DreamWorks Animation reported a loss of $15.4 million for the second quarter, compared to a prior-year profit of $22.3 million.

Revenue declined 43 percent to $122.3 million from $213.4 million in the same quarter a year ago. The company noted that its Q2 results were impacted by the reduction of the contingent consideration related to its prior acquisition of AwesomenessTV.

The TV segment contributed revenue of $20 million and gross profit of $1.2 million, thanks to Turbo F.A.S.T. on Netflix, Classic Media content and DreamWorks Dragons: Riders of Berk on Cartoon Network.

The feature-film segment contributed revenue of $69.7 million and gross profit of $23.9 million. How to Train Your Dragon 2, which was released in theaters June 13, has delivered $428 million to date; it contributed $2.6 million to feature-film revenue in Q2. The movie remains in an un-recouped position with the company's primary distributor, as does Mr. Peabody & Sherman, which contributed revenue of $1.5 million. The Turbo movie delivered $11 million in revenue for the second quarter, largely from home entertainment and international pay TV. The Croods, which contributed $25.5 million in revenue, also delivered strongly in home entertainment and international pay TV. Library titles contributed $27.1 million to Q2 feature-film revenue.

Consumer products, meanwhile, had $18.5 million in revenue with a $7.3 million gross profit.

"How to Train Your Dragon 2 is the ninth highest-grossing film of the year so far on a worldwide basis and it has yet to be released in several significant international territories," said Jeffrey Katzenberg, the CEO of DreamWorks Animation. "It will be a highly profitable film for the company and DreamWorks Dragons will remain a very valuable franchise for many years to come."