Shares in DreamWorks Animation SKG Inc. dropped by 10 percent on Monday following a poor weekend showing of its newest film, “How to Train Your Dragon 2.”
The $3 per-share loss is more bad financial news for the Glendale animation studio that has struggled of late at the box office. Shares closed at $24.35.
“How to Train Your Dragon 2,” the follow up to the 2010 hit, brought in $50 million in domestic box office over the weekend, and another $26 million in foreign receipts.
In April, when discussing first quarter earnings, DreamWorks Animation Chief Executive Jeffrey Katzenberg said he was “confident” that “Dragon 2” would help put the company “back on-track” in terms of financial performance.
Earlier this year, the company reported taking a $57 million write down on its spring release “Mr. Peabody and Sherman,” and a $13.5 million write down on last summer’s “Turbo.”
With box office performance flailing, DreamWorks Animation looks to other outlets for its content.
On Monday the company announced the launch of DreamWorksTV, a YouTube channel aimed at families with original live-action and animated short-form programming, and content featuring characters from DreamWorks films, including Shrek and Puss in Boots.
The channel will be overseen by Brian Robbins, who heads up AwesomenessTV, the YouTube network that DreamWorks Animation bought last year for $33 million.