(Alliance News) - Entertainment One Ltd on Friday reported a first-quarter revenue fall and widened loss as it edged closer to being acquired by US toy maker Hasbro Inc for GBP3.3 billion.
The Peppa Pig maker said revenue fell by 6.8% year-on-year to GBP173.1 million from GBP185.7 million in the three months to June 30. Its pretax loss widened sharply to GBP43.9 million from GBP6.8 million.
Acquisition costs of GBP6.1 million, relating to its April takeover of Audio Network Ltd, weighed on its first half earnings. Severance costs of GBP5.6 million did likewise, rising sharply from GBP1.5 million.
The FTSE-250 firm purchased Audio Network, a large independent creator and publisher of original music, for GBP178.8 million.
Entertainment One also reported one-off finance costs of GBP15.9 million, reversing a GBP400,000 gain it made in the same period last year.
There was a 7.6% fall in Film, Television & Music revenue to GBP143.7 million from GBP155.6 million on a decline in broadcast & licensing income.
The firm explained: "Music has experienced significant growth from the acquisition of Audio Network. Client Jax Jones sustained radio success with his hit single You Don't Know Me, which has achieved over 500 million streams globally since release. The group's live business, Round Room, announced new events during the period: the Baby Shark Live tour, the Rock the Rink Tour (a national tour featuring the Canadian Olympic Figure Skating team) and The Nelson Mandela Exhibit, set to launch in Berlin in October 2019 following a successful run in London.
"Strong growth in was offset by a lower performance in Film and Television which was largely due to variances in the timing and mix of deliveries compared to the prior period."
There was a more modest decline in Family & Brands quarterly revenue, by 2.3% year-on-year to GBP29.4 million from GBP30.1 million. Peppa Pig maintained its momentum in core market, Entertainment One said, with the Ricky Zoom children's show premiering to a strong audience in China.
Turning to its pending takeover by toy and board game giant Hasbro, Entertainment One said the transaction was still subject to regulatory consent and shareholder approval.
In August, Hasbro announced its intention to acquire the company in an all-cash transaction valued at GBP3.3 billion. Under the terms of the agreement, Entertainment One shareholders will receive GBP5.60 in cash for each share.
Entertainment One's annual general meeting will take place on October 17.
Shares in Entertainment One opened 0.2% lower at 561.50 pence each in London on Friday morning
By Eric Cunha; ericcunha@alliancenews.com
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