FINANCIAL HIGHLIGHTS
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Group reported revenue stable at £396 million (2016: £401 million), with strong growth in Family and Television offsetting lower performance in Film |
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Group reported underlying EBITDA up 36% at £51 million (2016: £38 million), driven by revenue growth in Family and Television and lower costs in Film |
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Group adjusted profit before tax up 53% at £36 million (2016: £24 million), Group reported profit before tax £0.8 million (2016: £2.5 million loss) |
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Adjusted diluted earnings per share of 4.8 pence per share (2016: 2.6 pence per share) |
OPERATIONAL HIGHLIGHTS
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Television revenue 17% higher driven by new productions in The Mark Gordon Company and continued growth in eOne Television |
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Family generated US$1.2 billion of retail sales in the period, an increase of 71%, driven by the hugely successful retail rollout of PJ Masks and continued growth of Peppa Pig o PJ Masks revenue growth over 600% period-on-period o Continued revenue growth for Peppa Pig of 18% due to expanding footprint including China |
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Strong Film pipeline including Steven Spielberg's The Post starring Tom Hanks and Meryl Streep, A Bad Moms Christmas and Molly's Game |
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Independent library valuation increased to US$1.7 billion at 31 March 2017 (2016: US$1.5 billion) |
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Reshaping of Film distribution business from physical to digital, which began in FY16 and was substantially completed in FY17, results in lower operating costs |
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Integration of Film and Television Divisions into a single studio operation proceeding as planned and expected to generate annual cost savings of approximately £8 million by FY20 |
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The Group anticipates full year financial performance to be in line with management expectations |
CORPORATE
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Robert McFarlane, former CFO of TELUS Corporation, and Michael Friisdahl, CEO of Maple Leaf Sports & Entertainment appointed as non-executive directors |
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Joe Sparacio, Chief Financial Officer, appointed as an executive director, with Margaret O'Brien stepping down as an executive director to increase the proportion of independent non-executive directors on the Board |
ALLAN LEIGHTON, CHAIRMAN, COMMENTED:
“Entertainment One has delivered a strong set of Group results for the first half of the financial year and has made significant progress in reshaping the Film/Television business to reflect the evolving entertainment market. I thank Margaret O'Brien for her contribution to the Board, as she moves into an expanded operational role, and welcome Robert McFarlane and Michael Friisdahl as new independent non-executive directors with the significant experience that they bring to eOne.”
DARREN THROOP, CHIEF EXECUTIVE OFFICER, COMMENTED:
“We are pleased to be able to report very robust first half performance which includes strong growth in the Family Division, strong performance in the wider Television Division, including The Mark Gordon Company, and lower operating costs and improved gross margins in Film which have driven strong growth in Group underlying EBITDA.
The Group's strategy to invest in content continues to bear fruit and the entertainment market's focus on quality content plays to Entertainment One's strengths ensuring that the Group is ideally positioned for the future, as illustrated by the increase in the underlying library valuation from US$1.5 billion to US$1.7 billion at 31 March 2017.
The period ahead is an exciting one. The Television business has 82% of the full year's expected margin already committed or greenlit; the Family business is underpinned by exceptional performance from Peppa Pig and PJ Masks; and the Film Division continues to focus investment on new partnerships to reshape the business. As such, the Group remains on track to deliver full year financial performance in line with management expectations.”