×
You will be redirected back to your article in seconds

Digital Domain Holdings Reports $64 Million in Losses

Digital Domain Holdings, the Hong Kong-based visual effects and virtual reality group, saw losses in 2016 more than double to $64.3 million.

The core Digital Domain 3.0 business provided VFX for films including “Beauty and the Beast,” “Deadpool” and “X-Men: Apocalypse” during the year.

Revenues across the group increased 45% from $68 million (HK$527 million) in 2015 to $98.5 million (HK$763 million) last year. Net losses, which totaled $23.1 million (HK$179 million) in 2015, reached $64.3 million (HK$498 million) in 2016.

The company pointed to content development and research and development costs for virtual reality content and games, 360° and virtual humans, and a more than fourfold increase in amortization of intangible assets, as causes of the financial pain.

Having bought up the outstanding 30% of a joint venture business in India in mid-year, DDH now says that it is expanding VFX and VR production capacity in India and in China. “[These] will increase the working capacity of the group and reduce production costs in the long run,” it said in a regulatory filing. “The effectiveness and efficiency of these expansions will be visible in the coming years.”

The company’s shares were unchanged in Friday morning trade on the Hong Kong Stock Exchange. With the shares at a 52-week low of HK$0.41, the company has a market capitalization of US$1.19 billion (HK$9.19 billion).

More Biz

  • Former movie producer Harvey Weinstein (L)

    Harvey Weinstein Hires New Lawyers Who Repped Kobe Bryant and Rose McGowan

    Harvey Weinstein has hired a new legal team to handle his rape and sexual assault case in New York, including attorneys who represented one of his most prominent accusers, actress Rose McGowan. Weinstein has hired Jose Baez and Ronald Sullivan, of the Baez Law Firm in Miami; Pamela Mackey of Denver, Colo.; and Duncan Levin, [...]

  • Bryan Singer: New Allegations of Sex

    Bryan Singer Hit With Fresh Allegations of Sex With Underage Boys

    UPDATED: Bryan Singer, the director of “Bohemian Rhapsody,” has responded to new allegations published in the Atlantic on Wednesday that he engaged in sexual misconduct with underage boys. In the report, four men allege that Singer had sexual encounters with them when they were teenagers in the late 1990s. One of the men, Victor Valdovinos, [...]

  • 'Zootopia' Land Coming to Shanghai Disneyland

    Disney to Open 'Zootopia' Land at Shanghai Theme Park

    The Shanghai Disneyland theme park is to be expanded with the construction of a themed land based on the “Zootopia” animated film and its characters. It will be the first “Zootopia” land at any Disney park worldwide. “The rapid rate of expansion at Shanghai Disney Resort demonstrates our confidence and commitment to the company’s future [...]

  • David Glasser

    David Glasser to Launch $300 Million Shingle With Ron Burkle's Backing (EXCLUSIVE)

    David Glasser, the former chief operating officer of the Weinstein Co., is launching a $300 million film and TV company with the backing of billionaire investor Ron Burkle, Variety has learned. The formation of the production outfit, named 101 Studios, marks a fresh start for Glasser, who was in line to become CEO of the [...]

  • Harvey Weinstein arrives at New York

    Judge Refuses to Pause Weinstein Class Action Case

    A judge on Tuesday denied Harvey Weinstein’s request to put a class action lawsuit on hold pending the outcome of his criminal trial. Ten women have sued Weinstein in federal court in the Southern District of New York, accusing him of violating the federal sex trafficking statute. The suit also alleges that an array of [...]

  • Andrea Ganis Promoted to President of

    Atlantic Records Elevates Andrea Ganis to President of Promotion

    Andrea Ganis has been promoted to the newly created position of president of promotion for Atlantic Records, it was announced today by Atlantic Chairman & COO Julie Greenwald and Chairman & CEO Craig Kallman. In her new role, she will continue to oversee all promotion activities for Atlantic and its subsidiary labels while serving on [...]

  • Roma

    Netflix Joins the Motion Picture Association of America

    UPDATED WASHINGTON — Netflix has joined the Motion Picture Association of America, a move that reflects its evolution as a major player in the movie business. The MPAA currently has six major studios as members, and it collected about $38 million in membership dues in 2017, according to its most recent filing with the IRS. [...]

More From Our Brands

Access exclusive content