ETO saw impressive performance from Television and Family divisions, with Film improving
Companies: Entertainment One
International entertainment distribution Group, Entertainment One, enjoyed a 2.5% jump on Friday after reporting growing revenues and earnings across all three of its divisions.
ETO, which distributes the Peppa Pig franchise and films like La La Land, said in a trading update that reported turnover has grown "significantly" having almost doubled versus the last financial year.
Underlying EBITDA is expected to be "materially ahead" YoY in certain divisions, with overall underlying EBITDA growing strongly. Year-end net debt is anticipated to be around 1.2-1.3x EBITDA.
The Group has three divisions, Television, Film, and Family. Television revenues in the full-year grew "significantly", doubling on the previous year, leading to an underlying EBITDA expected to be materially ahead YoY.
The performance in Television was driven by an impressive production delivery pipeline from eOne Television:
"...new series [include] ICE, Ransom, Mary Kills People and Cardinal; new seasons of You Me Her, Private Eyes, Saving Hope and Rogue..."
The Family division also enjoyed a bumper full-year, with strong results in H1 continuing into the second-half. Reported revenues are expected to be at least 25% higher than last year, with a similar growth figure in underlying EBITDA.
This was primarily through the successful licensing of Peppa Pig in the US. Peppa Pig retail revenues in the United States grew to $200m in 2016, supported by over 65 licensing partners including Target.
The Film division of ETO also delivered robust performance, with box office revenues in H2 strong from films like The Girl on the Train, La La Land, Jackie, and Lion.
CEO Darren Throop said the year had been a good one, with the Group performing well in both Television and Family, and making progress in the reshaping of its Film business:
"Management anticipates that the Group will deliver a full year performance in line with expectations as it continues to deliver against its stated strategy of increasing the quality and value of its library of content."
ETO shares have enjoyed a 77% rise since nearly hitting all-time lows in February last year. Consensus forecasts for the full-year ending 31 March are £986m in revenues, and £123m in pre-tax profit, more than double last year's PBT. Entertainment One's ROCE (return on capital employed) is an impressive 16.8%.
