Hollywood studio DreamWorks Animation SKG Inc reported a bigger-than-expected 40 percent jump in quarterly revenue, boosted by the box-office success of "Home" and strength in its business of providing television content.
Hollywood studio DreamWorks Animation SKG Inc reported a bigger-than-expected 40 percent jump in quarterly revenue, boosted by the box-office success of “Home” and strength in its business of providing television content.
The company said on Tuesday it earned $23.9 million in the second quarter ended June 30 from “Home”, which released on March 27.
The movie – its only release of the year – had one of the best openings for an original movie made by DreamWorks, pulling in $54 million in its opening weekend.
“Home”, starring singer Rihanna, Jennifer Lopez and Emmy-award winning actor Jim Parsons, grossed about $386 million worldwide as of Aug. 2, according to Box Office Mojo, a website that tracks theater ticket sales.
The movie, based on Adam Rex’s children’s book “The True Meaning of Smekday”, tells the story of how Earth is taken over by an alien race named Boov as they search for a new home.
This success marks a turnaround for the film studio, which took impairment charges related to the performance of “The Penguins of Madagascar” and “Mr. Peabody and Sherman”, as well as certain other titles and investments in the quarter ended December.
Revenue from DreamWorks’ television business more than doubled to $54.5 million, helped by higher number of episodes delivered under its content licensing arrangements.
DreamWorks said its original series “Dragons: Race to the Edge” debuted on Netflix Inc on June 26 and is officially among the most viewed new originals on the service.
“No other films (apart from “Home”) in 2015 so it’s a wait-and-see and enjoy TV till then!,” JBL Advisors Managing Director Jeffrey Logsdon told Reuters.
DreamWorks said sales and marketing costs will be higher in the second half because of upfront costs associated with the Netflix contract and increased marketing for holiday classics.
Total revenue rose about 40 percent to $170.8 million, beating the average analyst estimate of $166.7 million, according to Thomson Reuters I/B/E/S.
However, net loss attributable to DreamWorks widened to $38.6 million, or 45 cents per share, in the three months ended June 30 from $15.4 million, or 18 cents per share, a year earlier.
Excluding items, the company reported a loss of 13 cents per share.
The company incurred a $20.9 million pre-tax charge associated with a restructuring plan announced in January.
The plan included slashing about 500 jobs and producing one fewer movie a year.
“Transition from restructuring is still apparent in financials,” Logsdon said.