eOne Doubles Full-Year Earnings

May 19, 2015 World Screen
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TORONTO/LONDON: Entertainment One (eOne) saw its pre-tax profits rise 105 percent to £44 million ($68.27 million) for the year ending March 31, with the company now saying that it is on track to double the size of its business.

Overall revenue was down 5 percent to £785.8 million ($1.21 billion). TV revenue increased 37 percent to £227.6 million ($353.1 million), in part after eOne acquired TV producers Paperny Entertainment and Force Four Entertainment. The group also acquired a 51 percent stake in The Mark Gordon Company in January. For production and sales, revenues for the year were up 27 percent to £152.7 million ($237.5 million), driven by increased production and higher international sales. Within the Family & Licensing division, revenues for the year were up 71 percent to £60.8 million ($94.3 million), driven by significant growth in Peppa Pig.

Looking ahead, the television production and sales operation will be further enhanced by the first full-year contributions from Paperny Entertainment and Force Four Entertainment and anticipates producing more than 850 half-hours of content for distribution through the group’s global sales network in the new financial year. This will be supported by the AMC output deal and other third-party television content deals.

Darren Throop, eOne's chief executive, commented: "The group’s model to source, select and sell has once again underpinned both a strong set of results and significant operational progress including new deals with digital platforms, the acquisition of the stake in The Mark Gordon Company and further progress internationally for Peppa Pig. During the year we set out our updated growth strategy and since its launch have made solid progress against this across each pillar.

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"Scale is key, fundamental to attract and partner with more of the world’s best creative talent to produce the best content for distribution across our global network, which drives an improved financial return for the group. This, alongside our portfolio approach which mitigates against concentration risk, ensures that eOne is well positioned for the coming year and beyond.

"Great content is at the heart of Entertainment One. Consumer demand for high-quality content continues to grow, with a variety of digital media platforms emerging to service this demand. As these platforms enhance their offering and reach a wider global audience, we anticipate that audiences will increasingly focus on the quality of the content that they consume, gravitating towards premium television series, film and speciality genres. This market dynamic plays to Entertainment One’s strengths and supports our strategy to double the size of the group within five years."