eOne ‘on course to double in size’

Producer and distributor Entertainment One’s full-year results were in line with expectations and analysts said the 2016 prospects on the TV side of the business were bright, in the wake of recent acquisitions and the continued strong performance of kids series Peppa Pig.

Investment bank Investec said the full-year numbers were as expected and that momentum on the TV side of eOne’s business, which straddles film and TV, is driving upgrades.

The UK-listed company reported a 16% year-on-year increase in EBITDA profit of £107.3 million (US$166.6 million), but revenues were down 5%, at £785.8 million, across the same period.

Addressing the revenue decline, eOne said that strong performance in eOne’s TV operations were offset by the performance of the film division.

Looking ahead to 2016, Investec was bullish. It noted: “Strong TV prospects are helped by recent acquisitions, the AMC [agreement] and other third party output deals. Peppa growth is still expected to be good given international expansion in a number of large territories.”

The company is on track to hit its previously-stated goal of doubling in size over five years, it said this morning. It noted its acquisitions of US prodco The Mark Gordon Company and reality shops Force Four Entertainment and Paperny Entertainment are helping it achieve the scale required to hit that target.

Darren Throop, eOne founder and chief executive, said: “During the year we set out our updated growth strategy and since its launch have made solid progress against this across each pillar.”

He added: “We anticipate that audiences will increasingly focus on the quality of the content that they consume, gravitating towards premium television series, film and speciality genres. This market dynamic plays to Entertainment One’s strengths and supports our strategy to double the size of the Group within five years.”