eOne Drops Sale Plans

TORONTO: Entertainment One (eOne) has decided to abandon plans for a potential sale, after receiving offers that "do not adequately reflect the company’s value."

A statement from the company said the board is no longer considering the outright sale of the business, though it "continues to evaluate a number of acquisition opportunities." The group delivered strong quarterly results, for the three months ended December 31, 2011. EBITDA margins improved, driven by growth in eOne’s film and television arms. According to its interim management statement, the segments have "performed strongly and have seen 100 percent year-on-year growth in digital revenues." The TV division reported revenues that were "significantly ahead" of the prior year, with 39-percent growth in the year to date. Sales in the distribution division, however, were behind the prior year. The company said this was due in part to the closure of the group’s retail chain in March 2011 as well as disappointing trading over the Christmas period since the physical home entertainment market in Canada continues to shrink.