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Entertainment One confident of overcoming film weakness

Wed, 02nd Mar 2016 07:28

(ShareCast News) - Entertainment One said although group sales and earnings were dragged down by weakness from the film division, earnings expectations for the full year remained unchanged.In a trading update covering the nine months to 31 December, the film and TV distributor said group revenues slipped 3% as strong 39% growth in television sales were offset by the film weakness. At the half year sales were up 2%, implying the third quarter has been down 13% on an arithmetic basis.Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were 15% higher on a reported basis, which implies a major weakening in the third quarter as EBTIDA growth was 43% in the first half of the year. The outlook for full year underlying earnings is said to continue to be in line with expectations, which will deliver positive free cash flow.Despite obvious success of many Hollywood studios as evidenced by the recent Oscars, ETO has suffered a challenging period for its film business, with box office takings almost a quarter lower at $174m, reflecting what the company said is a difficult trading environment with a lower number of releases and some recent title underperformance, including the 'Steve Jobs' flop.But chief executive Darren Throop was confident the new partnership with Rupert Murchoch's 20th Century Fox Home Entertainment gives opportunity for a restructuring of the film division to create efficiencies and reduce costs, but not for a while. Throop predicted the restructuring will deliver annualised savings of £10m by 2018.A "very strong" slate of film releases should help the next financial year, with the partnership with Steven Spielberg's Amblin delivering titles such as Roald Dahl's 'The BFG' and thriller 'The Girl on the Train', as well as a range of other high profile releases including Ricky Gervais vehicle 'David Brent: Life on the Road'.There were also confident words about the acceleration of TV, with Mark Gordon and Peppa Pig particularly, secured by the acquisition of animation studio Astley Baker Davies in October, and a doubling of the Peppa licensee base and an estimated 275% increase in retail sales in 2015.Broker Peel Hunt said that the film component will reduce by circa 10% this year and is set to deliver mid single digit growth.Net debt by the year end will be circa £300m, slightly more than it forecast, and rising to £330m by end of the next financial year.Investec's Steve Liechti added that film was not as much as he had feared. "This is not a disaster in our view given the share price falls, but higher debt guidance - again - is unhelpful for the still very relevant growth-versus-cashflow debate."But with nine-month EBITDA up only 15%% vs 1H +43% implying 3Q is -40% on an arithmetic basis and vs our published FY +25% which now looks optimisticHis preliminary take is the current and next year's EBITD could fall 3%, implying circa 5% at EPS. While current year FCF is positive, debt looks higher given M&A and capex this year and outer years post new guidance on Mark Gordon content spend.
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25 Aug 2016 14:47

FTSE 250 movers: eOne too pricey for ITV, smaller banks a bargain says Merrill

(ShareCast News) - The FTSE fell along with much of the market on Thursday, with Entertainment One and Just Eat leading the way lower. Entertainment One, known as eOne and distributor of the 'David Brent: Life on the Road' film currently in cinemas, was sent skidding as ITV swerved a potential takeo

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25 Aug 2016 11:00

LONDON MARKET MIDDAY: Stocks Down As Clinton Remarks Hit Pharma Sector

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25 Aug 2016 11:00

EntertainmentOne plunges as ITV switches channels

(ShareCast News) - ITV has withdrawn its proposed acquisition of Entertainment One, refusing to up its offer for the film and TV distributor after its "ITV continues to believe in the strategic logic and potential benefits of acquiring eOne but has a clear view of the value of the business, reco

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25 Aug 2016 11:00

EntertainmentOne plunges as ITV switches off

(ShareCast News) - ITV has withdrawn its proposed acquisition of Entertainment One, refusing to up its offer for the Peppa Pig owner after its initial bid was rejected, potentially leaving the door open for rumoured private equity bidder KKR. "ITV continues to believe in the strategic logic and p

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25 Aug 2016 10:23

UPDATE 1-Britain's ITV withdraws offer for Peppa Pig-owner eOne

(Adds background, shares) LONDON, Aug 25 (Reuters) - British broadcaster ITV said on Thursday it would not bid for Entertainment One after failing to persuade the owner of the children's TV character Peppa Pig to enter into a formal process. Canada's Entertainment One said earlier t

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25 Aug 2016 09:59

BUZZ-Entertainment One: ITV withdraws proposal to buy co

** Peppa Pig-owner Entertainment One's shares down 14.3 pct in volume, largest FTSE midcap losers, after ITV drops bid to buy co ** Worst day for Entertainment One stock in nearly 9 months ** ITV says it withdraws proposal as its view of Entertainment One's value is different to that

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25 Aug 2016 09:57

Britain's ITV withdraws Entertainment One takeover approach

LONDON, Aug 25 (Reuters) - British broadcaster ITV said on Thursday it had withdrawn its proposal to acquire Entertainment One after failing to persuade the board of the Canadian company to enter into a formal process. Entertainment One said earlier this month it had rejected a 1 billion-p

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25 Aug 2016 09:54

TOP NEWS: ITV Withdraws Bid For Entertainment One

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22 Aug 2016 07:02

Monday newspaper round-up: Brexit chaos, Nigeria oil, house prices, ITV-ETO

(ShareCast News) - Leaving the EU may not not happen anytime soon given that civil servants charged with the task don't yet have an office and hold meetings in Starbucks. Some estimates suggest "full Brexit" may take 10 years and involve up to 10,000 people, not only in the new and other so-called "

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18 Aug 2016 07:53

Entertainment One buys virtual reality games and film maker

(ShareCast News) - Entertainment One, still abuzz with rumours about a potential takeover by ITV or others, completed its own acquisition on Thursday, buying the remaining half of Canadian interactive content studio Secret Location, a specialist in the burgeoning virtual reality space. The FTSE 250

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15 Aug 2016 15:59

Britain's FTSE at fresh 14-month high, Sage Group recovers

* FTSE 100 up 0.4 pct * Oil stocks track oil price higher * Sage Group ends up after early slide * Entertainment One gains after deal chatter (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageI

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15 Aug 2016 09:22

Britain's FTSE at fresh 14-month high, though Sage Group slips

(ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets) * FTSE 100 up 0.2 pct * Sage Group sinks after data breach * Oil stocks track oil price higher * Entertainment One gains af

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15 Aug 2016 08:29

Entertainment One surges on improved ITV bid hopes

(ShareCast News) - Shares in Entertainment One were surging on Monday morning on reports that ITV might improve its bid for the Canadian TV and film distributor. ITV was understood to be working on lifting its previous bid for eOne, which is the majority owner of the maker of the enormously popular

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15 Aug 2016 04:11

PRESS: KKR Eyeing Entertainment One Bid After ITV Rebuffed - Bloomberg

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15 Aug 2016 01:06

KKR weighs bid for 'Peppa Pig' owner Entertainment One -Bloomberg

Aug 14 (Reuters) - Private-equity firm KKR & Co may bid for television distributor Entertainment One Ltd after the owner of the preschool cartoon character "Peppa Pig" rejected an offer from UK broadcaster ITV Plc, Bloomberg reported on Sunday. KKR has not decided whether to make a bid, Bl

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