Search Share Prices
Entertainment One reports robust trading for 2017
Entertainment One reported solid trading in 2017 after the popularity of Peppa Pig and PJ Masks helped make up for weakness at its film arm.
The producer of television shows and films said underlying earnings were strong in the year to the end of March as momentum in the first half carried on.
At the family division, which makes children's TV shows and earns money from toys and other products, reported revenues and earnings rose by about 50%.
Peppa Pig, the company's chief character, performed well in mature markets such as the UK and Australia. Licensed Peppa Pig products sold well in China, supported by nationwide broadcast and more than 45bn views on video on demand. Peppa Pig also made progress in the US and debuted on Japanese TV in October with consumer products to follow in 2018.
Entertainment One, known as eOne in the trade, has been trying to reduce its reliance on Peppa Pig by adding series such as PJ Masks. The junior superhero show's second season started on Disney Junior in the US in January to strong ratings and season three has been commissioned. Consumer products for PJ Masks are selling better than expected.
The TV division had a good year with revenue growth across the business, Entertainment One said. The business includes The Mark Gordon Company (MGC), which makes Grey's Anatomy and Designated Survivor.
Entertainment One bought the 49% of MGC it did not own in January and installed Gordon as chief content officer. MGC had good revenue growth during the year and reaped the rewards of its library of TV and film titles.
Darren Throop, Entertainment One's chief executive, said: "Entertainment One has delivered a robust performance for the year with great momentum in both television and family. The repositioning of the film business is progressing on track and we are well-placed to put a greater emphasis on a production model supported by strong content relationships."
While Peppa Pig, PJ Masks and Designated Survivor have thrived, Entertainment One's film division has suffered from weak performance. Box office revenues fell by 37% in 2017 as the number of films fell and had a lower profile. Overall revenue at the division is expected to have fallen during the year, though this was expected.
Entertainment One has cut costs at the film business and the company is teaming up with high-quality film makers to gain more control over content quality.