First Half Results Up at Entertainment One

TORONTO: Adjusted profit before tax at Entertainment One (eOne) increased by 42 percent to £39.9 million ($60.7 million) on revenues that were up 2 percent to £337.1 million ($512.8 million) in the six months ended September 30, 2015.

Highlights of the period included the acquisition of a majority stake in Peppa Pig, almost doubling the number of half-hours of new programming produced or acquired and the formation of a new venture with Mark Gordon.

“The first half of the financial year has seen very strong growth in eOne’s Television business and this has supported a robust set of results at the Group level, despite lower activity in the period for the Film business,” said Darren Throop, CEO. “The Group’s profitability has improved significantly, with our broad portfolio of entertainment assets continuing to protect the bottom line against the cyclical nature of the market. The strong growth in the Group’s television activities provides greater balance to the Group’s portfolio whilst enhancing the Group’s mix of revenues towards higher margin activities. Peppa Pig continues to deliver strong cash flows and our acquisition of a further stake in the property gives eOne enhanced control over the development of the brand as we continue on our journey to double its retail sales by growing existing markets and developing new markets. Great content is at the heart of Entertainment One—our pipeline for the second half of the year and next financial year is strong and we continue to focus on the premium television series, film and speciality genres which are being demanded by consumers. The entertainment market continues to evolve and our differentiated strength as a producer, owner and distributor of content positions eOne as a key beneficiary of the changes that we are seeing in the landscape, and underpins our long term growth prospects. Having completed our £201 million rights issue, we now enter the second half of the year with a positive outlook and the firepower to reach our target of doubling the size of the Group by 2020, through organic growth and targeted acquisitions.”

Television production and sales revenues rose by 77 percent to £81.6 million, while the family and licensing segment saw revenues rise by 5 percent to £32.7 million. Revenues from the Mark Gordon Company were £7.9 million.