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Entertainment One's Designated Survivor series dropped by network
Entertainment One's major TV series 'Designated Survivor' has been dropped by US network ABC, which could affect the FTSE 250 company's revenue next year depending on the speed and size of a replacement deal.
The news from ABC, which has contracted for 22 episodes of the second series of show that stars and is produced by Kiefer Sutherland, comes less than four months after eOne snapped up the series' producer Mark Gordon Company, for which Designated Survivor had been the recent main revenue driver.
Clearly there will be no impact on the group's full year results for the year to 31 March 2018, which are due to be announced on 22 May.
"There may be a modest impact on next year's earnings, depending on the outcome of discussions with other parties, however the group remains on track to deliver against its stated strategic management expectations for the future," eOne said in a short statement on Monday.
In a year-end trading update in April, revenue at MGC's television business was said to be "primarily driven" by Designated Survivor. During the year to end March, MGC had five series airing on both US network and premium cable, all with "continued strong viewership".
In January, eOne acquired the remaining 49% share of MGC that it did not already own for $160m cash and $49m shares.
On Friday, US networks took an axe to a swathe of popular series, including Quantico, Lucifer and Last Man on Earth. Industry press noted that hopes of a resurrection were not so dim, due to recently cancelled Brooklyn Nine-Nine having been resurrected after a fan campaigns in the coming weeks, and that while not a massive ratings or critical success, Designated Survivor was a profitable show for ABC, thanks in part to a lucrative Netflix subscription video on demand deal and strong international sales.