12 May 2017 07:00
Date: 12 May 2017On behalf of: Entertainment One Ltd. ('the Company')Embargoed until: 0700hrs
Entertainment One Ltd.
Film reshaping one-offs drive future profitability
The Company expects to report approximately £47 million of one-off costs for the year ended 31 March 2017, whilst continuing to expect that underlying EBITDA for the financial year will be in line with management expectations.
As part of the previously announced wider reshaping of the Film Division, Entertainment One has re-negotiated one of its larger film distribution arrangements. The previous arrangement has been terminated and replaced with a new distribution arrangement and, associated with the termination, the Company will make a one-time payment of US$25 million which will be included in the Company's financial results for the year ended 31 March 2017. Management expects underlying profitability and cash flow to improve for films delivered under the new distribution arrangement.
In addition, one-off costs have been incurred amounting to approximately £27 million which largely relate to the accelerated reshaping of the Company's Film Division, including transitioning its physical distribution activities towards a digital content focused business model. This reshaping is also expected to drive improved underlying profitability and cash flow.
Entertainment One Ltd. will announce its results for the financial year ended 31 March 2017 at 7:00am on 23 May 2017.
This announcement contains inside information.
Darren Throop, CEO, commented:
"These changes are part of the reshaping of our Film business for the future and are expected to have a positive impact on both cash flow and underlying EBITDA for the Company."
Enquiries:
|
|
|
Redleaf Communications | Rebecca Sanders-Hewett David Ison Susie Hudson
| +44 (0)20 7382 4730 eOne@redleafpr.com |
Entertainment One Ltd. |
Joe Sparacio Patrick Yau |
+44 (0)20 3714 7931 |
|
|
|
J.P. Morgan Cazenove | Hugo Baring | +44 (0)20 7742 4000 |
| Virginia Khoo |
|
| Thomas White |
|
|
|
|
Investec Bank PLC | Patrick Robb Matthew Lewis | +44 (0)20 7597 5970 |
|
|
|
Notes to Editors:
About Entertainment One
Entertainment One Ltd. (LSE:ETO) is a global independent studio that specialises in the development, acquisition, production, financing, distribution and sales of entertainment content. The Company's diversified expertise spans across film, television and music production and sales, family programming, merchandising and licensing, and digital content. Through its global reach and expansive scale, powered by deep local market knowledge, the Company delivers the best content to the world.
Entertainment One's robust network includes film and television studio The Mark Gordon Company; content creation venture Amblin Partners with Steven Spielberg, DreamWorks Studios, Participant Media, and Reliance Entertainment; leading feature film production and global sales company Sierra Pictures; unscripted television production company Renegade 83; world-class music labels Dualtone Music Group and Last Gang; and award-winning digital agency Secret Location.
The Company's rights library, valued at US$1.5 billion (as at 31 March 2016), is exploited across all media formats and includes more than 100,000 hours of film and television content and approximately 40,000 music tracks.
www.entertainmentone.com