Entertainment One Share News (ETO)

(ShareCast News) - Media company Entertainment One reported a modest 2% rise in revenues for the year on Tuesday, to £803m, driven by strong performances in television and family offset by a weaker film division.The FTSE 250 firm reported a 20% jump in EBITDA to £129m, with organic growth in television and family as well as acquisitions contributing to the growth.Entertainment One's group reported profit before tax jumped 9% to £48m, with diluted earnings per share sitting at 9.6p, or 19.4p on an adjusted basis.The company's net debt leverage remained low at 1.4x group underlying EBITDA.Its board declared a 9% increase in dividend over last year, to 1.2p."eOne has delivered solid financial results at the group level, driven by strong organic growth in television and family, and the impact of acquisitions completed during the year, despite weakness in the film division continuing into the second half," commented chief executive Darren Throop."The benefit of the group's diversified model is apparent with growth in television and family providing a greater balance to the group's portfolio, enhancing the mix of eOne's revenues towards higher margin activities and protecting the bottom line against the cyclical film market," he added.Throop said the group's model to source, select and sell high-quality content continued to be at the centre of its strategy, as it continued to build relationships with content producers through its investment in Amblin Partners with Steven Spielberg and its acquisition of Renegade 83."We continue to select the best content to exploit across our global network and expect our film and television slate for the next financial year to be particularly strong" At the same time, we continue to deliver sales across the world through long-standing local relationships in our own territories and through our global international sales network, which has been enhanced through the investment in Sierra Pictures," Throop explained.He said the Mark Gordon Company currently has five US network and able series airing with two in production, with new family production PJ Masks surpassing its expectations as the company gears up for a new Peppa Pig series in July."Whilst there are positive expectations for the new financial year in film, we have taken specific steps in the division to address its long term profitability - a wide-reaching restructuring programme has been launched which will see annual cost savings of £10 million per annum from FY18, including long-term partnerships with Fox and Sony to help maximise eOne's home entertainment profitability."Throop said the foundations for growth are in place, and consumer demand was continuing to grow, leading to the board to anticipate that audiences will increasingly focus on the quality of the content they consume, gravitating towards premium television series, film and specialty genres."This market dynamic plays to Entertainment One's strengths and supports our strategic goal to double the size of the business over the five years to 2020."