Entertainment One Ltd. ('the Company', or 'the Group')
Embargoed until 0700hrs
Entertainment One Ltd.
Interim Management Statement
Entertainment One Ltd., the international entertainment group, presents its Interim Management Statement for the quarter ended 30 June 2011.
The Group has experienced another successful quarter with trading in the period in line with management expectations. Revenues increased 4.9% on a constant currency basis (1.5% at reported exchange rates).
Film revenues during the period increased 31.9% on a constant currency basis (28.3% at reported rates). The Group released 36 movies theatrically including Source Code, The Tree of Life, Potiche and Scream 4. Revenue growth was driven by strong performances in home entertainment, television and digital and the acquisition of Hopscotch in Australia which completed on 11 May 2011. Integration of Hopscotch into the Group is progressing well and the incremental benefits of the acquisition can already be demonstrated by the recent signing of an Australian output deal with Lakeshore Entertainment, to add to the Group's existing agreement in Canada. In July a five-year exclusive output deal was secured with LOVEFiLM, Europe's largest digital subscription service, for the digital streaming of the Group's UK film releases.
The Film business successfully acquired over 50 movies at the Cannes festival in May including multi-territory rights to major titles including Pompeii, Parker, The Big Wedding and 7 Psychopaths. The slate for the remainder of the financial year is strong and includes the theatrical release of The Three Musketeers 3D, The Ides of March, The Whistleblower, Dream House, Tinker, Tailor, Soldier, Spy, Ghost Rider 2 and, in November, the fourth episode in the blockbuster Twilight Saga series, The Twilight Saga: Breaking Dawn Part 1.
Television revenues were, as expected, in line with last year. The business remains on target to deliver around 300 half hours of programming this year (compared to 269 in the prior year) with deliveries heavily weighted to the second half. The last episodes of the second series of Rookie Blue were delivered in the quarter and broadcast commenced in North America in June. A third series has now been commissioned and international rights continue to sell well. The second series of sci-fi drama Haven and third series of comedy Hung are both on track to begin delivery in the second quarter while filming on Hell on Wheels has now commenced as planned. Production on legal drama The Firm, based on the best-selling novel by John Grisham, is progressing well with the announcement of a high quality cast and filming is due to commence later in the summer.
In Family Peppa Pig's strong viewing figures on Nick Jr. in the US have been maintained and following the successful performance in its weekend slots the show began airing daily in June, earlier than had originally been anticipated. In June the business announced an exclusive US toy partnership with Fisher-Price and, after a successful debut at the Las Vegas Licensing International Expo, good progress is being made in securing additional licensing deals in products such as clothing, books and accessories. Ben & Holly's Little Kingdom continues to perform strongly in the UK.
Sales in the Distribution division were behind the prior year. This was partly due to the expected impact of the closure of the retail chain in March 2011. The Canadian DVD market has been slow in the new financial year due to a combination of fewer tent-pole titles in cinemas and lower retail sales. We continue to expect modest declines in earnings in this division going forward.
The Group is trading in line with management expectations. The recent upgrade to expectations following announcement of the LOVEFiLM digital output deal in the UK demonstrates the success of the group's strategy of continued investment in content and the strength of its library of content rights.
Net debt at 30 June 2011 was lower than the corresponding point in the prior year and is in line with management expectations, although was higher than at the last year end due to usual seasonal factors and timing of the investment profile of the Film business. Net assets were in line with the year end.
The Group's Interim results for the 6 months to 30 September 2011 will be announced on or around Monday 14 November 2011.
+44(0)207 566 6720
Entertainment One Ltd.
+44(0)207 907 3773
Cenkos Securities plc
+44(0)207 397 8926
Singer Capital Markets Limited
+44(0)203 205 7500
Notes to Editors:
Entertainment One Ltd. (LSE:ETO) is a leading international entertainment company that specialises in the acquisition, production and distribution of film and television content. The company's comprehensive network extends around the globe including Canada, the U.S., the UK, Ireland, Benelux, France, Germany, Scandinavia, Australia, New Zealand and South Africa. Through established Entertainment and Distribution divisions, the company provides extensive expertise in film distribution, television and music production, family programming and merchandising and licensing. Its current rights library is exploited across all media formats and includes more than 20,000 film and television titles, 2,500 hours of television programming and 45,000 music tracks.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.