Visual effects firm Digital Domain eyes new China projects for growth as losses widen

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Digital Domain CEO Daniel Seah said the company has adopted cost-control measures, including outsourcing. Photo: Jonathan Wong

Published: 9:00pm, 31 Aug 2016Updated: 6:55am, 1 Sep 2016

Digital Domain Holdings, which operates the world’s largest independent visual-effects company, plans to tap into major new projects in greater China’s media entertainment market after posting a wider net loss in the first half of this year.

Daniel Seah Ang, chief executive at Digital Domain, said in a regulatory filing on Wednesday that the company will also “seek opportunities for financing and collaboration with strategic partners” to help bolster its business.

The company reported an interim net loss of HK$158.88 million, compared with a HK$76.39 million deficit in the same period last year.

It said the shortfall this year was caused by several factors, including the recognition of HK$41.54 million in granted share options, amortisation and depreciation expenses, interest expenses for convertible notes, increased administrative and operating costs, and operating losses from its media entertainment business.

Revenue, however, grew 19 per cent to HK$348.13 million, up from HK$293.49 million a year earlier.

US subsidiary Digital Domain 3.0, which runs the Hong Kong-listed parent’s main visual effects production business, booked revenue from several high-profile projects in the first half.

These included Hollywood films Deadpool, X-Men: Apocalypse and Independence Day: Resurgence, as well as marketing campaigns for Nike and Pokemon Go.