TIDMETO
RNS Number : 1324B
Entertainment One Ltd
31 March 2017
Date: 31 March 2017
On behalf of: Entertainment One Ltd. ('the Group')
Embargoed until: 0700hrs
Entertainment One Ltd.
Trading update
Strong trading performance in line with management
expectations
Entertainment One Ltd. provides the following trading update on
the Group's performance for the year to 31 March 2017.
Highlights
-- Strong growth in Group reported revenue
-- Underlying EBITDA grew strongly
-- Strong growth in Television and Family and an improved second half performance in Film
-- Year-end adjusted net debt is anticipated to be around 1.2x - 1.3x underlying EBITDA
-- Performance for the year has been in line with management
expectations, consistent with trends highlighted at the interim
results on 22 November 2016
Television momentum continues as industry trends support
growth
Reported revenues in the full year have shown significant
growth, having almost doubled against the previous year, with
underlying EBITDA anticipated to be materially ahead of the
previous year.
This revenue performance was driven by a solid scripted
production delivery pipeline from eOne Television (new series ICE,
Ransom, Mary Kills People and Cardinal; new seasons of You Me Her,
Private Eyes, Saving Hope and Rogue). Pre-production continues on
Sharp Objects, starring Amy Adams, Patricia Clarkson and Chris
Messina with full production commencing shortly. Total half hours
of acquired and produced content is anticipated to be around 1,000
for the year, with a smaller than anticipated number of lower
revenue unscripted half hours delivered.
The Mark Gordon Company ('MGC') has generated a significant
increase in revenues, benefiting from the global success of
Designated Survivor. Very strong audience ratings on ABC in the US
and CTV in Canada have provided a positive backdrop for discussions
for a second series, which are currently under way. Netflix remains
the global distribution partner for the show in international
markets outside North America.
MGC also has a strong film slate, with Molly's Game, Murder on
the Orient Express and The Nutcracker and the Four Realms all
currently in production. Development projects include Chronicles of
Narnia: The Silver Chair and Cowboy Ninja Viking.
Family goes from strength to strength
The strong performance over the first six months has continued
into the second half and reported revenues for the year are
anticipated to be at least 25% higher than the prior year, with a
similar trend in underlying EBITDA.
Following the successful wide licensing program launch of Peppa
Pig in the US ahead of the Christmas period, key retailers such as
Target have been broadening the product ranges available in-store.
Peppa Pig retail revenues in the US totalled over US$200m in 2016,
supported by over 65 licensing partners.
After the US broadcast launch of PJ Masks in September 2015, the
show has now been rolled out to over 85 territories across the
global Disney Junior network. The licensing programme for the brand
started in September 2016 in the US followed by the UK, France and
Spain in February 2017, with a staged introduction across more
territories to follow during the course of the next 12 months.
Although at an early stage, the retail performance of the brand has
been ahead of expectations and momentum remains strong, supported
by strong support from retailers such as Toys 'R' Us across
multiple territories.
Across the Family brands, there are now over 1,000 live
licensing and merchandising contracts globally.
Film delivers an improved second half performance
As anticipated, the rebound in box office revenues experienced
in the first half of the financial year continued into the second
half, driven by a strong release slate including The Girl on The
Train, Arrival, La La Land, Jackie and Lion.
The Group expects the release of 170 titles across its
territories during the financial year, with box office revenues for
the year up by over 25% on the prior year. This strong performance
has generated improved revenues in the ancillary release windows
for the full year and beyond.
As signalled in the interim results announcement on 22 November
2016, the current financial year did see a more significant first
half weighting in costs for the Film business, driven by the timing
of P&A associated with high profile theatrical releases during
the period. In the second half, against the challenging headwinds
previously identified, the Film business experienced a significant
improvement in profitability as those same films benefitted from
strength in ancillary windows. As a result, the Group anticipates
that full year underlying EBITDA will be in line with that of the
prior year.
The distribution pipeline for the new financial year includes
Luc Besson's Valerian and the City of a Thousand Planets, Steven
Spielberg's The Post starring Tom Hanks and Meryl Streep, the Aaron
Sorkin written and directed Molly's Game starring Jessica Chastain
and Idris Elba and produced through MGC and George Clooney's
Suburbicon.
Darren Throop, Chief Executive, commented:
"The Group has had a good year, with strong performance in both
Television and Family and major progress on the reshaping of the
Film business.
Management anticipates that the Group will deliver a full year
performance in line with expectations as it continues to deliver
against its stated strategy of increasing the quality and value of
its library of content."
The Group expects to announce its results for the twelve months
to 31 March 2017 on 23 May 2017.
Enquiries:
Redleaf Communications Rebecca Sanders-Hewett +44 (0)20 7382 4730
Susie Hudson eOne@redleafpr.com
Entertainment One
Ltd. Patrick Yau +44 (0)20 3714 7931
Notes to Editors:
About Entertainment One
Entertainment One Ltd. (LSE:ETO) is a global independent studio
that specialises in the development, acquisition, production,
financing, distribution and sales of entertainment content. The
Company's diversified expertise spans across film, television and
music production and sales, family programming, merchandising and
licensing, and digital content. Through its global reach and
expansive scale, powered by deep local market knowledge, the
Company delivers the best content to the world.
Entertainment One's robust network includes film and television
studio The Mark Gordon Company; content creation venture Amblin
Partners with Steven Spielberg, DreamWorks Studios, Participant
Media, and Reliance Entertainment; leading feature film production
and global sales company Sierra Pictures; unscripted television
production company Renegade 83; world-class music labels Dualtone
Music Group and Last Gang; and award-winning digital agency Secret
Location.
The Company's rights library, valued at US$1.5 billion (as at 31
March 2016), is exploited across all media formats and includes
more than 100,000 hours of film and television content and
approximately 40,000 music tracks.
www.entertainmentone.com
This information is provided by RNS
The company news service from the London Stock Exchange
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