30 Sep 2015 07:00
Date: | 30 September 2015 |
On behalf of: | Entertainment One Ltd. ('the Company', or 'the Group', or 'eOne') |
Embargoed until: | 0700hrs |
Entertainment One Ltd.
Pre-Close Update
Further to its Trading Update, announced on 9 September 2015, and noting today's announcement that the Company has entered into a share purchase agreement to acquire 70 per cent. of the entire issued share capital of Astley Baker Davies Limited, which jointly owns the rights to Peppa Pig with the Company, for £140 million funded through the net proceeds of a fully underwritten 4 for 9 rights issue for ~£200 million, Entertainment One Ltd. is pleased to provide a pre-close update on Group performance.
Overall the Group anticipates that earnings performance in the first half of the financial year will be in line with management expectations with strong performance in Television, partially offset by weaker than expected Film performance as previously noted, driving improved margins at a Group level.
Television has continued to perform strongly on a pro forma constant currency basis over the comparative period, driven by strong international sales and production deliveries. The Group is on track to produce/acquire over 1,000 half hours of content in the full year. The Mark Gordon Company is anticipated to deliver a strong first half and is expected to be ahead of management expectations in the full year. Family continues to benefit from the further expansion of Peppa Pig into new international territories and increased licensing activity. In addition, the Group has signed a US broadcasting deal with Nick Jr. for Ben and Holly's Little Kingdom and enjoyed a strong start to the broadcast of PJ Masks on Disney Channels.
Performance in the Film Division in the first half is expected to be impacted by a lower number of theatrical and DVD releases compared to the prior year period. The Group expects to release ~95 theatrical titles in the first half, compared to 134 in the prior year period, however the deferral of some releases into H2 gives confidence in the Group's ability to deliver around 230 film releases in the full year. Management continues to focus on addressing cost efficiencies and restructuring opportunities to improve profitability in the Film Division.
As previously noted, the outlook for underlying earnings for the full year continues to be in line with management expectations.
Results for the six months ended 30 September 2015 will be announced on 17 November 2015.
Enquiries:
| ||
Redleaf Communications | Emma Kane/ Rebecca Sanders-Hewett | +44(0)20 7382 4730 eOne@redleafpr.com |
Entertainment One Ltd. | Giles Willits/Patrick Yau
| +44(0)20 3714 7931 |
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 and South Africa.
Through established Film and Television Divisions, the Company provides extensive expertise in film distribution, television and music production, family programming, merchandising and licensing, and digital content. Its current rights library is exploited across all media formats and includes more than 40,000 film and television titles, 4,500 hours of television programming and 45,000 music tracks.
Further information is available at www.entertainmentone.com or email Redleaf Polhill at eOne@redleafpr.com