Entertainment One Regulatory News (ETO)

8 Oct 2009 07:00



Entertainment One Ltd.

Trading Update

Entertainment One Ltd. (the "Company") is pleased to provide a trading update for the six month period ended 30 September 2009.

Highlights

Company performing in line with expectations

Revenues expected to increase by over 20% compared to equivalent prior period (over 7% on a proforma and constant currency basis)

Increased slate of film releases scheduled for second half 

Television success with major US network broadcasters

Independent content library valuation up from US$175 million to US$220 million

Film 

E1 Film has experienced strong trading in the first half of the year with anticipated revenue up over 70% following the increased investment in film content made during the previous twelve months. The business released over 50 films theatrically, including Sorority Row, 17 Again, Away We Go, Coco Avant Chanel and Ghosts of Girlfriends Past. It has also had notable successes in DVD sales following on from last year's box office hits including Twilight  (which grossed box office receipts of US$385 million globally) and Knowing (that reached number one in the box office in both the UK and Canada).

The second half of the financial year will continue to see a strong schedule of high profile theatrical releases across the territories in which the business operates, including New Moon (the second instalment in the Twilight franchise), I Love you Philip Morris (starring Ewan McGregor and Jim Carrey), An Education (starring Peter Sarsgaard and Rosamund Pike), The Imaginarium of Dr Parnassus (starring the late Heath Ledger) and the Hollywood remake of the 1980's hit movie Fame.

Television 

Following the acquisitions made during 2008, E1 Television has continued its success, securing three significant commissions for network shows in the US and Canada including The Bridge (CBS and CTV), Copper (ABC and Canwest) and Hung (HBO).

These new productions are scheduled for delivery in the second half of the financial year and will bring the Company's total expected half hours of production to over 190 in the current year, up on 139 in the year ending 31 March 2009. These achievements consolidate E1 Television's position as the number one independent Canadian TV producer, with proven reach into US and international broadcast markets.

E1 Kids continues to deliver strong results, with pre-school animation character Peppa Pig now in its fourth series having recently won the Best Pre-School Licensing Property at the 2009 Licensing Awards. New shows Ben & Holly's Little Kingdom and Humf are performing well on Nick Jr. in the UK.

Home Entertainment and Music

The Company's Canadian home entertainment distribution business continues to deliver robust results with sales broadly in line with the prior year. The US music and distribution businesses have responded well to the restructuring following the market contraction in the second half of last year and are performing in line with expectations. 

Library Valuation

As part of the Company's annual obligations under its financing facility it has received an updated independent third party report valuing its film, television and music library as at 31 March 2009 in excess of US$220 million, up from US$175 million in 2008.

The Company will publish its interim results on 18th November 2009.

Darren Throop, Chief Executive of Entertainment One, said:

"We are pleased with the Company's performance in the first half of the financial year. The results of our film business demonstrate the success of the Company's strategy of sustained investment in content acquisition and we remain excited by the release slate scheduled for the remainder of the financial year. Our television operations continue to produce high quality programming with sales into major US networks alongside international distribution. With the core businesses in the group performing robustly, we remain well positioned to build for future growth."

Notes: 

Entertainment One Ltd. (AIM: ETO) is a leading independent entertainment content owner that acquires film, television and music rights and exploits these rights in all media in more than 190 countries. The company currently operates in Canada, the U.S., the UK, Holland and Belgium through its two divisions: Entertainment (comprising Television, Film and Music) and Distribution. These businesses collectively represent E1's extensive expertise in film distribution, television and music production/distribution, Kids content, Licensing and Distribution. E1's content library includes more than 4,000 feature films, 2,800 hours of original television programming and 15,000 music tracks.