4Kids Entertainment posts deeper loss in 2Q

Shares of children's entertainment licensing company 4Kids Entertainment Inc. sank Monday after the company reported a wider second-quarter loss on higher selling, general and administrative costs.

Its stock dropped 53 cents, or 5.9 percent, to $8.39 in afternoon trading.

Losses for the three months ended June 30 totaled $5.5 million, or 42 cents per share, compared with a loss of $2.2 million, or 17 cents per share, in the same period last year.

Revenue rose 37.7 percent to $16.5 million from $12 million.

The revenue includes about $5.1 million from the sale of Chaotic trading cards at major retailers and comic and hobby stores in the United States and Canada. Though the trading card sales matched the company's expectations, expenses related to improving the Chaotic website and operations contributed to higher selling, general and administrative costs for the quarter.

Sales were also hurt by lower licensing revenue from the company's core properties - Yu-Gi-Oh!, Teenage Mutant Ninja Turtles and Cabbage Patch Kids.

Selling, general and administrative expenses surged 31 percent to $13.3 million, while total costs and expenses increased 33 percent to $22.8 million.