Glendale–based animation studio DreamWorks Animation SKG Inc reported a bigger-than-expected loss in the first quarter as the animation company spent heavily on diversifying its business.

According to the company, which is known for animation movies like ‘Madagascar’, ‘Shrek’ and ‘Kung Fu Panda’, its selling and administrative expenses soared more than 85% in the first three months of year due to costs associated with expansion of its AwesomenessTV business.

DreamWorks reported that it shares have fallen 5% in light extended trading to $24.70 on Thursday. DreamWorks has planned to expand its business due to competition from studios like Universal Pictures and Warner Bros.

On Tuesday, DreamWorks’ unit AwesomenessTV signed a deal with YouTube to releases some feature films over the next two years. According to reports, the first film could be released this fall.

The company has also reported higher-than-expected revenue for the first quarter of 2015. According to the company, the revenue has been helped by the successful release of ‘Home’. The film, which features singer Rihanna and actor Jim Parsons, earned $54 million in its opening weekend.

According to a statement released by DreamWorks on Thursday, the film has grossed about $308 million worldwide as of April 30.