30 Sep 2010 07:00
Date: 30 September 2010 On behalf of: Entertainment One Ltd. ("the Company" or "the Group") Embargoed until: 0700hrs
Entertainment One Ltd.
Pre-Close Trading Update
Entertainment One Ltd. (LSE:ETO), the international entertainment group, is pleased to provide shareholders with the following update on trading prior to entering its closed period and the announcement of its interim results for the six months ended 30 September 2010 on 17 November 2010.
Highlights
·; Solid growth in the period and full year results anticipated to be in line with market expectations
·; Strong film release slate for remainder of the year
·; Notable successes for the Television business in both US network re-commissions and Family properties
·; International distribution network extended into Scandinavia and South Africa
·; Independent library valuation increased by 14% to over $250 million
Overview
The Group has experienced another period of strong growth with reported revenues in the first half of the year expected to increase by more than 20% (and 15% on a constant currency basis) driven by the continued expansion of the Film and Television businesses. The Company anticipates results for the full year to be in line with market expectations.
Film
The Film business has performed well, supported by more than 60 theatrical releases (51 in the first half last year). The blockbuster summer movie The Twilight Saga: Eclipse grossed almost £30 million at the UK box office and over $27 million in Canada and positions the business for a strong DVD performance, scheduled for release in December. Other releases in the first half across the group's territories included Letters to Juliet, Splice, Furry Vengeance, Streetdance3D, Law Abiding Citizen andThe Hole 3D.
The slate for the second half of the year remains strong. Forthcoming titles include RED (starring Bruce Willis and Helen Mirren) and, in February 2011, the much anticipated 3D animated movie Gnomeo & Juliet, featuring the music of Elton John and Bernie Taupin and a cast of voices including James McAvoy, Emily Blunt, Dame Maggie Smith, Michael Caine, Julie Walters and Ozzy Osbourne.
Television
Television had a very successful first half with the delivery of more than 100 half hours of programming (85 half hours in the comparative period). The Group continues to grow its profile with major US networks and highlights included the premiere of police drama series Rookie Blue on ABC, which was one of the highest rated series of the summer in North America, and comedy Call Me Fitz, starring Jason Priestley. Mystery drama Haven premiered on Syfy channel in the US and is the highest rated original series on Showcase in Canada.
The pipeline of new shows remains strong with Rookie Blue and Call Me Fitz being commissioned for second series and award winning comedy Hung moving to a third series. Internationally, Rookie Blue has already been sold in more than 120 territories and Call me Fitz in 40 territories. A pilot has recently been completed for a new contemporary western, Hell on Wheels (in partnership with Endemol USA and US cable channel AMC), while the Company has recently signed an international distribution agreement with Fox Channels International for the new AMC series The Walking Dead.
eOne Family, which is focused on developing kids and family programming and brands, also continued to perform well. Peppa Pig, currently sold in 180 territories worldwide, recently became the first property to win the Best Pre-School Licensed Property award for two years running at the UK's 2010 Licensing Awards. The new range of merchandising for Ben & Holly's Little Kingdom launched during the summer into major UK retailers has performed ahead of expectations. In addition the release of the first series DVD has outperformed expectations, opening as the number one selling family title with major retailers.
International Expansion
During the first half the Group added Scandinavia and South Africa to its global distribution network. These territories further expand the Group's international distribution footprint, which also includes Canada, the US, the UK, Ireland, Belgium, the Netherlands, France, Australia and New Zealand. This growing network strengthens the Group's ability to benefit from acquiring multiple territory content rights in both its Film and Television businesses.
Library valuation
The Company has recently received its annual independent third party report, as required under its financing facility, valuing its Film, Television and Music library at 31 March 2010 at in excess of $250 million, up from $220 million at 31 March 2009.
Distribution
The Distribution business continued to trade broadly in line with expectations despite fewer major home entertainment releases in the Canadian market in the first half. The release schedule is expected to improve in the third quarter.
- ends -
| Enquiries:
Redleaf Communications |
Emma Kane Rebecca Sanders-Hewett
|
+44(0)207 566 6700 eOne@redleafpr.com |
| Entertainment One Ltd. | Giles Willits Scott MacFadyen | +44(0)207 907 3773 +1 416 903 6581
|
| Singer Capital Markets Limited
| James Maxwell Nick Donovan
| +44(0)203 205 7500 |
| Cenkos Securities plc | Stephen Keys Beth McKiernan | +44(0)207 397 8926 |
Notes to Editors:
Entertainment One Ltd. (LSE:ETO) is a leading international entertainment company that specializes in the acquisition, production and distribution of film and television content. The company's comprehensive network extends around the globe including Canada, the U.S., the UK, Ireland, Benelux, France, Scandinavia, Australia, New Zealand and South Africa. Through established Entertainment and Distribution divisions, the company provides extensive expertise in film distribution, television and music production, kids programming and merchandising and licensing. Its current rights library is exploited across all media formats and includes more than 20,000 film and television titles, 2,400 hours of television programming and 45,000 music tracks.
Further information is available at www.entertainmentonegroup.com or email Redleaf at eOne@redleafpr.com