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  • 24 Sep 19

Entertainment One - Trading update and library revaluation

Entertainment One’s trading update to 23 September (ie most of H1) does not disclose figures, due to the Hasbro bid. The group is heavily weighted to H2. Family & Brands achieved flat revenues against prior period, despite a difficult trading environment. Film, TV and Music (FTM) revenues were slightly behind, with a strong music performance offset by unflattering comparatives in film and TV due to timing and mix. The independent library revaluation was $2.1bn at end March (2018: $2.0bn). The acquisition agreement with Hasbro, for 560p per share cash, is to be put to share-holders on 17 October, with the circular now available. Approval requires two-thirds of votes cast to be in favour. Our forecasts are withdrawn.

Companies: Entertainment One
  • 31 Jul 19

Entertainment One - Mark Gordon’s content

Entertainment One (ETO) has reached a multi-year production agreement with Mark Gordon to develop and produce content. The continuing alignment of his efforts with the group’s objectives is good news and removes any residual uncertainty post last month’s press stories. We have now updated our forecasts for the bond refinancing; the reduction in forecast interest costs results in uplifts to PBT and EPS for FY20e and FY21e of 4–5%. ETO is currently trading at a discount of around 7% to peers, based on our sum-of-the-parts valuation.

Companies: Entertainment One
  • 21 May 19

Entertainment One (ETO) FY19 results interview

entertainment-one-eto-fy19-results-interview-21-05-2019
  • 21 May 19

Entertainment One - Content creation and ownership

Entertainment One’s full year results showed strong growth in underlying EBITDA, +21%, broadly in line with market and our estimates. The Family & Brands division is benefiting from the higher margins from advertising and streaming video on demand (AVOD and SVOD), with underlying EBITDA up 28%. Film, TV & Music’s performance reflects the completion of the transition in film and the shift in mix toward TV, with an improvement in underlying EBITDA margin from 11.6% to 14.6%. Our revised forecasts show the positive impact of the recent Audio Network acquisition (and the boost from IFRS16), diluted at the EPS level by the additional shares.

Companies: Entertainment One
  • 21 May 19

Entertainment One (ETO) FY19 results presentation

entertainment-one-eto-fy19-results-presentation-21-05-2019
  • 12 Apr 19

Entertainment One - Sounds like a good deal

Entertainment One (eOne) has announced the acquisition of Audio Network for £165m (cash-free, debt-free basis) alongside a share placing at 450p to raise c £130m. Audio Network’s business model meshes very neatly with eOne’s, adding both music resource and a substantial recurring revenue base while giving the group’s existing artists and catalogue new revenue-generating opportunities. The purchase price represents 15x LTM reported EBITDA and management indicates the deal would be earnings enhancing in its first year (FY20).

Companies: Entertainment One
  • 04 Apr 19

Entertainment One - Good year all round

Entertainment One’s (eOne) year-end trading update indicates financial performance in line with expectations, with the groundwork in place for good progress across both Family & Brands and Film, Television & Music. The benefits of the transition towards production in film are clear, with better margin potential, a reduced risk profile and stronger free cash flow. Our EBITDA and EPS forecasts are unchanged and we have introduced numbers for FY21e, showing continuing progress. The intense competition between new and competing SVOD providers is driving a very healthy appetite for high-quality entertainment content.

Companies: Entertainment One
  • 20 Nov 18

Entertainment One (ETO) H1 results interview November 2018

entertainment-one-eto-h1-results-interview-november-2018-20-11-2018
  • 20 Nov 18

Entertainment One - 2019: Year of the (Peppa) Pig

Entertainment One’s interims are in line with expectations. Our FY19 and FY20 revenue forecasts are trimmed but we have lifted expected margins, leaving EBITDA and EPS broadly unchanged. This reflects the further mix shift to Family & Brands, where good momentum continues behind Peppa Pig and PJ Masks, especially in China. Film & TV is part-way through its transition from distribution to content production, with divisional EBITDA also impacted by an H2-weighted release schedule. The net effect was a group EBITDA margin of 14.8% (H118: 13.3%). Changing consumption patterns provide a strong backdrop to high-quality content providers such as eOne. We regard the shares as attractively priced on earnings and with regard to the portfolio valuation of $2.0bn.

Companies: Entertainment One
  • 20 Nov 18

Entertainment One (ETO) H1 results presentation November 2018

entertainment-one-eto-h1-results-presentation-november-2018-20-11-2018
  • 27 Sep 18

Entertainment One - Library valuation uplift

Entertainment One’s (eOne’s) pre-close trading update confirms the group is trading well and is on track to meet full-year market forecasts. There is no change to our forecasts at this juncture. The group’s rights library has been independently reassessed and has increased to a value of US$2.0bn, from US$1.7bn at the time of the last valuation in March 2017. The group’s current market capitalisation is c £1.8bn (US$2.3bn). Recent strong share price performance has narrowed the discount to peers, but further positive news flow would allow additional upside.

Companies: Entertainment One
  • 17 Sep 18

Entertainment One - Unlocking the value of creativity

Entertainment One’s (eOne’s) capital markets day (CMD) presentation highlighted its strong content and depth of management, with its independence allowing the luxury of platform agnosticism. With the major tech platforms building audience engagement to drive their broader business models, high-quality content remains a key differentiator that plays to eOne’s strengths. The strategy for Family & Brands is to focus on a tight portfolio, maximising merchandising and licensing opportunities. Recent strong share price performance has narrowed the discount to peers, but further positive newsflow would allow additional upside. Our forecasts are unchanged.

Companies: Entertainment One
  • 22 May 18

Entertainment One - On course to double EBITDA by 2020

An excellent performance from Family & Brands and strong growth in Television offset declines in Film to deliver EBITDA growth of 11%, which is in line with forecasts. The group is in good shape entering FY19 and is on track to deliver to its five-year plan to double EBITDA by 2020. The shares are on a c 40% P/E and c 20% EV/EBITDA discount to global peers and we believe they offer good value.

Companies: Entertainment One
  • 22 May 18

Entertainment One (ETO) results interview May 2018

entertainment-one-eto-results-interview-may-2018-22-05-2018
  • 22 May 18

Entertainment One (ETO) Full year results presentation May 2018

entertainment-one-eto-full-year-results-presentation-may-2018-22-05-2018

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Entertainment One. We currently have 57 research reports from 4 professional analysts.

Open
N/A
Range Today
N/A
52 Week
336/589p
Daily Volume
N/A
# Shares
498.7m
Daily Liquidity
(0.20%)
Pension Liability
£0m
Enterprise Value
£3,113m
Market Cap
£2,778m
Latest PE (hist)
22.16
Div Yield
0.26

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  • 15 Nov 19

FY’19 organic Media sales up 31% y/y

Future Plc’s FY results revealed the better than consensus growth noted in the trading update last week. Underlying group revenues grew 11% y/y, and 70% on a reported basis to reach £221.5m (FY’18: £130.1m), with organic Media revenue growth of 31% (reported: 134%) to £154.9m (FY’18: £66.3m). EBTIDA margins were 24.6% (FY’18: 15.9%) supported by increased scale and improving product mix. Regionally, US sales grew an organic 40% y/y with US ARPU still at a 38% discount to the UK (FY’18: 48%). EPS growth rose 95% y/y to 47.5p/share, whilst FCF rose >200% to £53.7m. Alongside FY results, management have announced the acquisition of Barcroft Studios (‘Barcroft’), a small independent studio that creates original video content for distribution across owned and operated social sites as well as mass media channels. Total consideration is £23.5m (9.4x LTM EBITDA), of which 40% will be satisfied in shares. Finally, management have also noted that, after a strong Q1, the Group now expects to be materially ahead of full year expectations. As joint broker to Future, we are restricted and can therefore provide factual comment only up to the conclusion of the General Meeting.

Companies: Future
  • 26 Mar 19

Cenkos: XLMedia Plc - High FCF yield

2019E should see the beginning of a recovery phase. Development effort into existing assets and diversification away from gambling should help reduce the volatility seen of late. The free cash flow yield is pricing in no recovery whatsoever.

Companies: XLMedia
  • 21 Oct 19

Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

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  • 12 Nov 19

Guidance confirmed

The decrease in total advertising revenue slowed in 9 months 19 (-3% vs -5% in H1 19), reflecting a positive trend in Q3 19 (+1%) and corresponding to the high range of guidance (-1/+1%). Online revenue grew significantly (+23% in 9 months 19 vs +18% in H1 19). As expected, ITV Studios benefited from high deliveries of programmes, in particular from ITV America. The 2019 guidance is confirmed and a dividend of at least 8.0p/share was reiterated.

Companies: ITV
  • 24 Sep 19

Quality of revenue improves during a strong half

This has been a good half, seeing growth in registrations, group revenue and renewals, assisted by a full six months of ICM. The increased sales at higher margin has meant H1 adj. EBITDA jumped over 300%; moreover, a key point is approached as renewal revenues now cover almost all costs: partner payments, cost of sales, and opex. Operationally, progress has also been made in resolving the legacy contract issues. MMX remains comfortably on track for our FY 2019 expectations, which remain unchanged. The company remains wary of giving FY 2020 guidance at this stage. However, looking ahead, this is a much more stable operation; a much better quality to the revenue stream, a controlled cost base, legacy issues addressed; and exciting and innovative growth opportunities.

Companies: Minds + Machines Group
  • 17 Jul 19

Cenkos: XLMedia Plc - Tender Offer

XLMedia has announced a Tender Offer to buy back 9.5% of the current issued share capital at 80p per share. If passed at the forthcoming EGM and fully tendered, then the earnings accretion in 2020E will amount to a 12% increase in fully diluted EPS. The company has also confirmed that current trading is in line.

Companies: XLMedia
  • 31 Oct 19

Successful completion of ABB ahead of potential acquisition

Future Plc has announced the completion of an accelerated book build undertaken at 1275p/share (a 6.25% discount to yesterday’s closing price). The announcement of the placing of 8,184,906 (raising £104.4m of gross proceeds) has been made alongside a proposed acquisition of TI Media, the UK-based, print-led consumer magazine and digital publisher. The consideration of £140m for TI Media will also be funded through drawdown of an additional £45m of debt. This acquisition of TI Media is conditional upon 1) shareholder approval; and 2) CMA clearance. Alongside the proposed acquisition and placing announcements is a brief trading update, with revenues expected by management to be at the top end of consensus, and in the region of £220m. As joint broker to Future, we are restricted and can therefore provide factual comment only.

Companies: Future
  • 26 Feb 19

Cenkos: XLMedia Plc - Focus on Publishing assets

By focusing on Publishing activities and reducing exposure to its Media interests, the announced strategic update should deliver a higher quality business. Investment in Publishing assets will continue and there will be a focus on growth opportunities in the US market. The progressive dividend policy is maintained including a pay-out ratio of 50%+ of net profits.

Companies: XLMedia
  • 05 Sep 19

Strong pre-close update drives forecast upgrades

Future Plc has announced better than expected performance in its FY’19E pre-close trading update driven by a mix of Amazon Prime Day activity and positive underlying momentum in US operations, supported in part by a strong dollar. Integration of recent acquisitions has further increased capacity, supplementing already positive organic audience growth and benefitting margin performance. Top-line outperformance means full year EBITDA is now expected to be materially ahead of current market expectations, and leads us to upgrade forecasts for the second time since July. Revenue expectations for FY’19E are raised 6% to £210m, with EBITDA upgraded to £53.2m (up 10%). We prudently leave FY’20E and FY’21E sales forecasts broadly unchanged for now, although we raise our EBITDA margin expectations by +80bps and +50bps for FY’20E and FY’21E respectively. EPS expectations rise 11%, 4% and 2% for FY’19E, FY’20E and FY’21E respectively. An FY’20E intrinsic value of 1,356p/share offers an attractive 14% upside from current levels, although we now see potential headroom in FY’20E forecasts.

Companies: Future
  • 17 Sep 19

Strong progress, 24.2% growth in revenue

Kape Technologies has reported first half revenue a touch ahead of the guidance given in July’s trading update with Adjusted EBITDA in line with the suggested $5.8 million. The results show strong progress in growing SaaS revenues with the number of subscription users increasing by 24% to over 1 million and the retention rate improving again to a very healthy level. The first half also saw further investment in customer acquisition paying off with ZenMate and Intego – now both fully integrated into the Group - benefitting. New product launches and high-profile successes by Intego’s macOS security analyst team helped augment Kape’s market positioning. We note that this business model continues to enhance Kape’s ongoing revenue visibility and that Kape is growing market share. We make no change to our numbers as the Board expresses confidence in meeting stretching market growth estimates.

Companies: Kape Technologies
  • 03 Oct 19

Microsoft unveils folding phone, Samsung ends China production, Google updates privacy features

Microsoft unveiled the new Surface Duo, which runs on Android, at its annual hardware event on Wednesday. The folding phone features two side-by-side 5.6-inch displays that are connected by a 360-degree hinge. Microsoft said it partnered with Google to “bring the best of Android” to the device, while incorporating elements of Windows 10X, a new operating system meant for hybrid devices. It can also run two different apps at the same time. Specifically, the Surface Neo will rely on a new "Expression" of its Windows 10 operating system called Windows 10X.

Companies: KAPE EYE IMO

  • 11 Oct 19

Outperformance at Mobile Nations now expected

Future Plc has today announced the achievement of accelerated earn-out payments related to the acquisition of Mobile Nations in March’19. Deferred consideration of $55m (50% cash/ 50% new shares) becomes payable, with management assuming the achievement of an $11.5m EBITDA contribution from Mobile Nation operations to March’20. Mobile Nations management team will continue to work within Future within the newly created Future Labs, tasked with driving additional organic growth by integrating new initiatives, businesses, tools and processes once they reach a suitable maturity level. Future management continue a strong record quickly bedding down new acquisitions. The modest outperformance in Mobile Nations performance is largely offset by a marginally bigger than expected share base increase. We make no changes to our forecasts however at this time.

Companies: Future
  • 21 Oct 19

YouGov - Stretch targets exceeded

YouGov’s final results to end July showed strong revenue growth (+10% underlying) and a 200bp increase in operating margins. The continuing drive is on growing Data Products and Services and focusing Custom Research on more profitable business. The ambitious targets to improve profitability set in the original five-year plan have been met. The new five-year plan to FY23 targets doubling both revenue and adjusted operating profit margin, as well as achieving a 30% CAGR in EPS (25% EPS CAGR in the earlier plan). In this context, the valuation premium to slower-growing peers looks well underpinned.

Companies: YouGov
  • 28 Oct 19

Gfinity - Building on leadership in esport

Gfinity (LON:GFIN) is a world leader in the fast-growing market for esports. The company designs, develops and delivers full end-to-end esports solutions. This includes bespoke content, tournament and event solutions for commercial partners via the company’s proprietary online platform, live broadc

Companies: Gfinity
  • 01 Apr 18

AIM Journal

Two former AIM companies could be in the FTSE 100 index in the near future following the successful bids by Melrose Industries for GKN and GVC for Ladbrokes Coral. Melrose has been on the brink of the FTSE 100 for a while and if a constituent company of the FTSE 100 is acquired than it can be replaced by the acquirer when it is eligible. Melrose is already on the reserve list for inclusion in the FTSE 100, following the March 2018 quarterly review.

Companies: PTSG JDG TRCS TRMR KETL SRB