DreamWorks Animation Widens Loss in Q1

GLENDALE: DreamWorks Animation reported a loss of $54.8 million in its first quarter, compared with a net loss of $43 million in the same period a year prior.

Restructuring charges, totaling $31.9 million, offset a 13-percent increase in revenue. The company reported Q1 revenue of $166.5 million, helped by the success of Home, its only movie release so far this year, as well as revenue from its How to Train Your Dragon franchise. 

The feature film segment delivered revenues of $128 million for the quarter, up from the $110.1 million in the prior-year Q1. Segment profit also increased to $41 million, compared to a loss of $25.4 million in the same period a year ago.

Revenue for the quarter from the TV series and specials segment were pretty much flat on the prior year at $18 million. Segment gross profit declined to $3.5 million, largely due to higher up-front marketing costs from the launch of new series.

In the consumer products segment, revenues increased to $15.1 million, compared to Q1 2014's $12.1 million. Profit in this segment increased to $6.5 million, as higher revenues were partially offset by the timing of creative development expenses and investments in new initiatives.

Revenues in the new media segment were up, from $4.1 million a year ago to the current $4.6 million.

"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," said Jeffrey Katzenberg, the CEO of DreamWorks Animation. "In addition, last Friday, our television series All Hail King Julien won the Emmy Award for Outstanding Children's Animated Program. This recognition highlights the extraordinary talent and high quality of their work being done at the studio today and we couldn't be prouder."