Entertainment One Regulatory News (ETO)

Entertainment One Ltd.

Pre-close trading update

Prior to entering its close period, Entertainment One Ltd. (LSE:ETO) is pleased to announce the following update for the financial year ended 31 March 2014:

§ Group revenues and underlying EBITDA, on a reported basis, expected to be higher than the prior year

§ Full year earnings anticipated to be in line with management's expectations, consistent with the Company's Interim Management Statement released on 13 February 2014

Overview

The Group has had a strong financial year, with reported Group revenues expected to be higher than the prior year, reflecting the acquisition of Alliance Films Holdings Inc. in January 2013 and underlying growth in the Television Division. Group underlying EBITDA is also expected to be higher, driven by increased revenues, an improvement in underlying operating margins and the delivery of the Alliance acquisition synergies.

On a pro forma constant currency basis, Group revenues are expected to be higher than the prior year, driven mainly by growth in the Television Division.

The Group has released 278 films and anticipates delivering over 300 half-hours of television content in the current financial year. Investment in content and productions is expected to increase to over £260 million in the current financial year (2013 pro forma at forecasted constant currency rates: £215 million).

The Company expects full year earnings to be in line with management expectations, consistent with the Company's Interim Management Statement released on 13 February 2014.

Film

The 2014 financial year has been a period of consolidation and growth for the Film Division. The integration of the Alliance business is substantially complete, with synergies ahead of original expectations. eOne is now the largest independent film distributor in the UK, Canada, Spain and the Benelux.

On a reported basis, Film revenues are higher than the prior year driven by the increased number of box office releases and the performance of the enlarged library of films across the Group (pro forma revenues expected to be broadly in line year-on-year). Theatrical releases for the year included Now You See Me, The Hunger Games: Catching Fire, American Hustle, Prisoners, Philomena, The Butler, Rush, Behind the Candelabra, 12 Years a Slave and Divergent. DVD releases included Now You See Me, Django Unchained, Red 2, The Impossible, 2 Guns, Safe Haven, Silver Linings Playbook, Nativity 2: Danger in the Manger! and Bullet to the Head.

Digital revenues in the Division are higher in comparison to the prior year which, alongside synergies from the combination of the Alliance film business, has helped drive improved gross profit and underlying EBITDA margins.

Television

The Television Division is expected to deliver higher revenues and underlying EBITDA driven by strong performance in both the Family and Television Production businesses.

The Television Production business is expected to deliver over 300 half-hours of programming in the financial year, compared to 295 in the prior year, with key deliveries including season two of Saving Hope, season two of Rogue, season three of Hell on Wheels and season four of Haven. Hell on Wheels has recently renewed for a fourth season and Haven has recently renewed for a fifth season. New shows have included Klondike, the Discovery Channel's first scripted project (which helped drive Discovery Channel to deliver its most-watched Monday primetime to-date and best ever month for viewership), and Bitten, which premiered on Syfy and Space.

Television Production has signed two exclusive multi-year television distribution agreements for original scripted series with US-based AMC Networks' AMC and Sundance Channel and the recently-launched El Rey Network.

Peppa Pig continues to perform strongly in the UK and globally - it is the number one pre-school toy licensed property in the UK, Italy, Spain and Australia and is expanding into further afield markets including Russia, Latin America and South Korea. This March saw Peppa increase its US television presence, with shows now airing for three-and-a-half hours on Nick Jr. on a daily basis. Also in March, the first Peppa Pig DVD launched in the US, shipping to key retailers including Wal-Mart, Target and Toys'R'Us. Peppa toys launched in January on Amazon.com and will launch in April on Walmart.com, adding to the range of Peppa merchandise already available online with Wal-Mart.

Family also saw positive developments from Ben and Holly's Little Kingdom which won the pre-school category at the recent International Emmy Kids Awards. In addition, eOne is in production on a new animated show for 6-12 year olds, called Winston Steinburger and Sir Dudley Ding Dong, for broadcast in association with Teletoon Canada and ABC3 Australia.

Financing

Adjusted net debt at year end is expected to be broadly in line with management expectations, and up on the prior year primarily reflecting increased investment in content and productions.

As announced on 19 November 2013, it remains the intention of the Board to announce an inaugural dividend with the 2014 full year financial results.

Results for the financial year ended 31 March 2014 will be announced on 20 May 2014.

Notes to Editors:

About Entertainment One

Entertainment One Ltd. (LSE:ETO) is a leading international entertainment company that specialises in the acquisition, production and distribution of film and television content. The company's comprehensive network extends around the globe including Canada, the US, the UK, Ireland, Spain, Benelux, France, Germany, Scandinavia, Australia, New Zealand, South Africa and South Korea.

The company provides extensive expertise in film distribution, television and music production, family programming and merchandising and licensing. Its current rights library is exploited across all media formats and includes more than 35,000 film and television titles, 2,800 hours of television programming and 45,000 music tracks.

Further information is available at www.entertainmentonegroup.com or email Redleaf Polhill at eOne@redleafpr.com.