FT13 Nov 2012 09:22
November 12, 2012 11:41 pm
Peppa Pig boosts Entertainment One
By Duncan Robinson
The successful introduction of Peppa Pig to US audiences has helped Entertainment One, the film and television distributor behind the pink cartoon character, report strong sales growth.
On Monday, the company announced that rights to the anthropomorphic pig were selling “ahead of expectations” in the US, helping revenues in its entertainment division jump 16 per cent to £166.2m for the six months to the end of September.
Darren Throop, chief executive, said: “Peppa is as strong as ever. She just continues to show incredible strength in new markets.”
Entertainment One also signed broadcast deals for Peppa in Latin America and Mexico as well as in Asia.
Peppa’s success will not be shortlived, according to Mr Throop. “If she’s managed properly, she can go a long time,” he said, comparing Peppa to established children’s TV favourites. “Thomas, Bob, Barney – these properties can go on for 30 to 100 years. Peppa is viewed as an evergreen title in the UK. We’re trying to replicate that in other territories.”
“She’s in her infancy really – she’s a very young pig,” added Mr Throop.
Entertainment One’s total revenues rose 8 per cent year-on-year to £220.5m, as the group released 15 more films than in the same period of 2011. Profit before tax, however, fell 90 per cent to £1m as the scheduling of big releases, such as the new Twilight film, resulted in higher first half costs. Cost of sales rose almost a fifth to £172.9m.
Digital revenues in the group’s film division rose 40 per cent year-on-year, but overall film revenues were broadly flat at £109.8m – and Mr Throop warned that the growth in digital markets would not continue in the long term. “We’re looking at another three to five years of fairly explosive growth than a more consistent level,” said the chief executive.
Mr Throop said there was “good, solid appetite” for further acquisitions, after Entertainment One agreed to buy Alliance Films, the Canadian film distributor that owns the film rights to the Lord of the Rings trilogy and Stieg Larsson’s novels, for $230.2m in September.
Although still subject to approval from the Canadian Competition Bureau, analysts expect the deal to be completed by early 2013.
The group’s operating cash flow jumped by almost half to £60.8m."
http://www.ft.com/cms/s/0/90c0cb6c-2ced-11e2-beb2-00144feabdc0.html#axzz2C5envDiT
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