eOne Posts Higher Revenues, Combines Film & TV Businesses

In reporting its financial results for the fiscal year ended March 31, Entertainment One (eOne) announced the combination of its television and film arms into a single global sales team.

“This is expected to lead to a more streamlined approach to the sale of television and film content in windows outside of theatrical release,” the company said. “We expect this change in structure to yield increased revenue and profitability benefits from FY18 onwards.”

The group posted revenues that were 35-percent higher at £1.08 billion ($1.4 billion), driven by strong growth in television (up 85 percent), eOne Family (up 33 percent) and stable financial results in film. Acquisitions completed during the year contributed £50.2 million ($6.7 million) to the group’s reported revenues. Underlying EBITDA was up 24 percent to £160.2 million ($207.7 million), with solid growth in TV (60 percent), eOne Family (28 percent) and, again, stable financial results in film.

Allan Leighton, eOne’s chairman, said: “Entertainment One has delivered a strong trading performance for the year, with very pleasing revenue growth from television and Family, and another year of growth in underlying EBITDA. It is particularly noteworthy that this performance includes significant organic growth and has been delivered against a backdrop of a recovering film business after two years of market volatility. This robust set of results allows the board to increase the dividend for the year to 1.3 pence, in line with its progressive policy.”

Darren Throop, the company’s chief executive, added: “It has been another exciting year for the group, and I am pleased to be reporting another strong set of financial results. The work undertaken during the year keeps us at the center of the positive structural change ongoing in the industry, and is in line with the source, select, sell strategy which continues to serve eOne so well, underpinning our growth trajectory.

“The television and Family divisions have performed extremely well this year, both with double-digit growth in sales and continuing to build momentum for the future. Particular highlights include The Mark Gordon Company illustrating its strength in creative content production with the success of internationally acclaimed Designated Survivor, as well as the very successful rollout of the licensing program for newcomer PJ Masks, which supported another stellar year for Peppa Pig.

“Film delivered a stable set of financial results with underlying EBITDA in line with the prior year. The continued reshaping of the division, where initiatives undertaken included integrating our physical distribution partnerships with Fox and Sony, and the refocusing of our film distribution arrangements has positioned us well to retain our strong position catering to a changing global film market.

“The company is in an excellent position to continue to thrive going forward. Joe Sparacio has been permanently appointed, we are focusing on ensuring the business is best placed to maximize return on investment, and our significantly increased library valuation clearly demonstrates the enduring value of premium content in a constantly evolving entertainment market. We are on track to deliver our growth target of doubling the size of the business in the five years to FY20.”