Entertainment One Ltd Trading Update (2709L)

TIDMETO

RNS Number : 2709L

Entertainment One Ltd

30 September 2016

 
 Date:       30 September 2016 
 On behalf   Entertainment One Ltd. ('the Company', 
  of:         or 'the Group', or 'eOne') 
 Embargoed   0700hrs 
  until: 
 
 

Entertainment One Ltd.

Trading Update

Entertainment One Ltd. provides the following trading update on the Group's performance as it completes the six month period ended 30 September 2016.

Summary

-- Operating performance to-date on track across all Divisions, with a strong committed film and television slate underpinning the second half of the financial year

-- The Group anticipates full year financial performance will be in line with management expectations

   --     Independent library valuation increased to US$1.5 billion (2015: US$1 billion) 

Operating Performance

Television

eOne Television is on track to grow the business with the production/acquisition of around 1,100 half hours of content in the full year. In Production, new commissions include serialised crime drama Cardinal and hostage show Ransom, whilst both Private Eyes and You Me Her have been re-ordered for second seasons. A strong second half pipeline includes new shows Mary Kills People and Ice and renewals Rogue 4 and Saving Hope 5. The non-scripted business is already benefiting from Renegade 83's new season of Naked and Afraid and has a strong pipeline in the second half. The International Sales business is on track for a record year with new seasons of Fear The Walking Dead, Halt and Catch Fire and Turn as well as a growing number of deals and buyers for eOne-produced shows. The second half will also include sales of newly commissioned comedy Foreign Bodies.

The Mark Gordon Company has started delivery of Designated Survivor, the first series under its new independent studio model. The show premiered as ABC's strongest scripted telecast in its time slot in four years securing 45% more viewers than its closest time slot competitor, and totalled over 15 million viewers for its Live+3 ratings (Adults 18-49)[1]. International sales for the show, which are handled by eOne, have been very strong and a worldwide streaming rights deal excluding North America has recently been announced with Netflix. Production is also under way on Conviction, distributed internationally by eOne, and the show premieres on ABC on 3 October 2016.

In addition, The Mark Gordon Company currently has five additional renewed series airing on both US network and premium cable, including Grey's Anatomy, Criminal Minds, Criminal Minds: Beyond Borders, Quantico and Ray Donovan. The Mark Gordon Company has commenced principal photography on The Nutcracker and the Four Realms for Disney and is in pre-production on Molly's Game, written and to be directed by Aaron Sorkin and starring Jessica Chastain and Idris Elba. Molly's Game is being distributed internationally by eOne and in the US by STX Entertainment.

Family

The Family Division has seen growth for Peppa Pig progress in line with management plans as the brand continues to roll out in international territories. In the US, the Division has seen even stronger than expected demand for Peppa Pig merchandise across a number of product categories. In China, the show has now surpassed 6 billion views on local on-demand platforms iQIYI, Youku and Tudou since launching in October 2015 and it is also one of the most popular programmes for pre-schoolers on state television broadcaster CCTV. Major Chinese online retailers, Jing Dong and Tmall, have launched a wide range of Peppa Pig merchandise on their popular online shopping sites and merchandise is also available at Toys "R" Us stores nationwide. Delivery of the new series of Peppa Pig has commenced with a total of 52 new episodes being delivered between now and late 2017. The first new episode airs in the autumn in the UK and the US.

PJ Masks continues to deliver strong audience figures in the US and in a number of international territories including the UK, France, Italy, Spain and Australia. The first series will continue to roll out on Disney Junior channels around the world throughout 2016 and 2017, and a second series has been greenlit for delivery from autumn 2018. The US merchandising programme will launch in October 2016 with product exclusively available at Toys "R" Us, then moving to further retailers in early 2017.

Film

The Film Division has released a series of higher profile titles in the first half delivering increased period-on-period box office totals of US$151 million to-date (2015: US$97 million). The Group expects to release 85 theatrical titles in the first half (2015: 96 releases).

Significant releases in the period included The BFG, which grossed GBP30 million at the UK box office, Now You See Me 2, Bad Moms and Woody Allen's Café Society. The slate for the second half includes The Girl on the Train, based on the best-selling novel, which opens in the UK and several other territories in the first week of October, Office Christmas Party, the third title from our partnership with Amblin Partners, and Lion, A Monster Calls and La La Land, which all premiered to wide acclaim at the Toronto International Film Festival, with La La Land going on to win the top prize at the festival, the People's Choice Award.

Management continues to focus on delivering cost efficiency opportunities to improve profitability in the Film Division and is on track to deliver its annual GBP10 million cost saving target from FY18.

Outlook

The outlook for underlying financial performance for the full year continues to be in line with management expectations.

Corporate

The Group's annual independent library valuation has been completed, including all of eOne's television, family, film and music assets. As at 31 March 2016 the overall value of the Group's content library had increased to US$1.5 billion (2015: US$1 billion) primarily driven by strong performance from the Group's Family properties and the acquisition of an additional 35% interest in Peppa Pig.

During the period, following its initial investment in 2014, the Group completed the purchase of the remaining 50% stake in leading digital studio Secret Location, which results in full ongoing ownership by the Group.

The Company's Annual General and Special Meeting takes place at the Company's Toronto offices at 10:30am EST/3:30pm BST today.

Results for the six months ended 30 September 2016 will be announced on 22 November 2016.

 
 Enquiries: 
 Redleaf Communications    Rebecca Sanders-Hewett      [phone] 
                            Sarah Fabietti-Dallison     4730 
                            Susie Hudson                [e-mail] 
 Entertainment             Giles Willits               [phone] 
  One Ltd.                  Patrick Yau                 7931 
 

Notes to Editors:

Entertainment One Ltd. (LSE:ETO) is a global independent studio that specialises in the development, acquisition, production, financing, distribution and sales of entertainment content. The Company's diversified expertise spans across film, television and music production and sales, family programming, merchandising and licensing, and digital content. Through its global reach and expansive scale, powered by deep local market knowledge, the Company delivers the best content to the world.

Entertainment One's robust network includes film and television studio The Mark Gordon Company; content creation venture Amblin Partners with Steven Spielberg, DreamWorks Studios, Participant Media, and Reliance Entertainment; leading feature film production and global sales company Sierra Pictures; unscripted television production companies Renegade 83, Paperny Entertainment and Force Four Entertainment; world-class music labels Dualtone Music Group and Last Gang; and award-winning digital agency Secret Location.

The Company's rights library is exploited across all media formats and includes more than 100,000 hours of film and television content and approximately 40,000 music tracks.

www.entertainmentone.com

[1] Live+3 ratings (Adults 18-49) viewership measures live viewing plus digital video recorder playback viewing up to three days later for adults between the ages of 18 and 49.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 30, 2016 02:01 ET (06:01 GMT)