DreamWorks Animation SKG Inc. posted a $15.4-million loss in the second quarter after the company saw lower-than-expected box-office results for its latest movie, "How to Train Your Dragon 2."
The Glendale company reported a loss of of $15.4 million, or 18 cents a share, in the second quarter, down from a profit of $22.2 million, or 26 cents, a year earlier, the Los Angeles Times reports.
Revenue dropped 43% to $122.3 million from $213.4 million a year earlier during the three months that ended June 30.
The results were well below what analysts had expected. Analysts surveyed by Thomson Reuters had expected a loss of 2 cents a share and revenue of $138 million in the quarter.
"How to Train Your Dragon 2," which was released theatrically June 13, has generated $428 million to date. The film contributed feature film revenue of $2.6 million to the second quarter.
Results were released after markets closed. Shares fell 9% to $20.59 cents in after hours trading.
In a statement, DreamWorks Animation Chief Executive Jeffrey Katzenberg said the film has yet to be released in several important international territories.
“It will be a highly profitable film for the company and DreamWorks Dragons will remain a very valuable franchise for many years to come,” he said.
DreamWorks took a $57-million write-down on its previous film, "Mr. Peabody & Sherman," that prompted the studio to reexamine the types of movies it produces and when to release them.
DreamWorks executives also told analysts in a conference call that the Securities and Exchange Commission was investigating a $13.5-million write-down that the company took in February on the movie “Turbo.” The company said it was cooperating with the investigation but declined to comment further.
The studio's next movie, "Penguins of Madagascar", will be released in November.
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