Strong Profit Gains at Entertainment One

TORONTO/LONDON: Entertainment One reported a pre-tax profit for the year ended March 31, 2012 of £23.1 million ($36.1 million) on revenues that were 7 percent higher at £502.7 million ($785.7 million).

The company reported film-division revenues of £272 million ($425 million), with 152 theatrical releases in the period. Also up were digital revenues, rising to £66 million ($103 million), thanks largely to its LOVEFiLM pact in the U.K. Digital now accounts for 13 percent of group revenues. TV revenues, meanwhile, were up 43 percent to £97 million ($152 million). Distribution revenues, however, from the wholesale DVD business in Canada and its music and DVD distribution businesses in the U.S., were down by 16 percent.

"It has been a very positive year for Entertainment One," said CEO Darren Throop. "I am delighted to report another strong set of results, which clearly illustrate the strength of our strategy of continued investment in content. The growth in our television business and doubling of digital sales have been particular highlights and demonstrate the success of our multiplatform strategy. I am also pleased to report that Peppa Pig’s international success continues and am excited about the licensing and merchandising roll out in the U.S. later this year.  I look forward to the year ahead and we plan to continue to drive further value for our shareholders through both organic growth and acquisition opportunities."

In its financial report, the company confirmed that talks have been held with the board of Alliance Films about a possible acquisition of the Canadian film financing and distribution outfit.