Entertainment One Share Discussion Threads

[raffles the gentleman thug] 03/10/2016 12:23

Personally am of the opinion that ITV comes back to the table with a 280p to 300p offer. Reason being that there are no other material opportunities for them to lever their balance sheet by £1.5bn, whilst achieving the diversification away from advertising that they also desire, whilst also boosting the rate of earnings growth ....

[foxeye2] 03/10/2016 12:16

If this meteoric rise continues, we could even reach... perhaps where the share price was in July last year - before the rights issue of course. Still, it keeps the rampers happy!

[salpara111] 03/10/2016 11:30

Well I guess I have changed to a strong hold again!

[rivaldo] 03/10/2016 08:14

JP Morgan have this morning raised their target price to 246p (from 236p) and are Overweight as regards ETO:

[panic investor] 02/10/2016 08:15

Walked the dog in the mist !

[rivaldo] 02/10/2016 08:07

LOL! That what having a young-ish child does for you....what's your excuse?!

[panic investor] 02/10/2016 08:00

Up and about early Rivaldo ! Shocked to see fav threads updated on a Sunday at sparrow o'clock !

[rivaldo] 02/10/2016 07:56

Nice coverage in the Mail with brief comment from the CFO about the added potential for PJ Masks:



"Peppa Pig's been watched 6 billion times in China: Porcine superstar drives growth at Entertainment One

Published: 21:56, 30 September 2016

Takeover target Entertainment One saw the value of its library of TV shows and films increase by 50 per cent as it predicted booming sales of its latest children's series.

The firm, which fended off a bid from ITV last month, saw the value of its collection rise from $1billion to $1.5billion.

Growth in the value was largely driven by the success of Peppa Pig, with Entertainment One this year upping its stake in the show by 35 per cent to 85 per cent.

And it revealed the programme has become a hit in China, with Peppa watched 6bn times since it began airing a year ago.

The firm also predicted increased profits from new hits such as PJ Masks, which features six children who turn into superheroes while dressed in their pyjamas.

The company hopes the show could one day be as big as Peppa Pig, according to chief financial officer Giles Willits.

He said: 'It's doing well and it's a great show. And we are getting great support from the channels that support us. Is it another Peppa Pig? Who knows.'

The first series of PJ Masks is on Disney Junior while a second has been ordered for 2018."

[value king] 01/10/2016 18:23

The BFG helps Entertainment One get box office boost

[masurenguy] 01/10/2016 18:18

Content is king for Entertainment One

Entertainment One, which rejected a bid from ITV in August, shored up its defences against another hostile offer yesterday by revealing that the value of its content library had risen from $1 billion to $1.5bn in the space of just a year. Darren Throop, chief executive, insisted last month that there was no process under way to sell the company, which has been on a buying spree itself in recent years. This was despite calls from Livermore Partners, a US activist hedge fund which has a stake in eOne, for the company to put itself up for sale. This came after ITV withdrew its £1 billion offer and followed reports of a possible bid from KKR, the private equity firm.

Any potential bidders for eOne would have to dig very deep after the company said that its annual independent library valuation covering all of its television, family, film and music assets, had increased by 50% to $1.5bn, as at the end of March. The rise was primarily driven by the group’s family entertainment properties and the acquisition of an additional 35% interest in Peppa Pig, the hit cartoon character.

EOne, a Canadian company listed in London, distributes shows, music and films including The Walking Dead and films such as the Twilight and Hunger Games series. It also has the forthcoming movie The Girl on the Train, based on the Paula Hawkins novel and due to be released in cinemas on Friday. In a trading update it said that its family division had been boosted by stronger than expected demand for Peppa Pig merchandise in the US and the international rollout of the show. In China the cartoon has now surpassed six billion views on local on-demand platforms since launching last October.

[jamesjjj] 30/9/2016 18:20

I have been following ETO for some time and buying in as it has been going down as it has always looked a fundamentally sound business. I have watched some of their webcasts and what comes out that is significant is that their acquisitions tend to be made on potential future growth rather than just actual.They do that by ensuring that they dont just buy the content but the creator that made the content comes with it.Ie peppa pig came with more future episodes as part of the deal, Mark gordon came along with his content, ensuring his valuable links and know how could be tapped into. Smart. In other words they are savvy in making sure that the creative element that made the success in the first place is part of the deal. Not everybody does that, many companies buy content alone and the creator goes away with a fat cheque and a long holiday.

[steptoes yard] 30/9/2016 17:34

The crackling is starting to appear on ITVs wallpaper

[tini5] 30/9/2016 16:41

ITV must be pig sick they didn't come back to the table .

...sorry, couldn't resist that one.

[steptoes yard] 30/9/2016 15:47

Good statement, plenty of growth in that library, retention of independence is a must

[tini5] 30/9/2016 15:39

Up a few more ticks. Cooking on gas today...

[raffles the gentleman thug] 30/9/2016 15:35

Harsh but fair - funny how all these trolls scarper as soon as shares start to rise ...


I myself am buying more here with a view to making a 30% to 40% return a year from now, provided the cashflow comings through. Right now one can justify that return just from a rerating from 9x forward earnings to 12x, which would still be a discount to peers.

Think they beat numbers in November meeting on revenue growth and fx benefit. Stocks like this as rare as hen's teeth ...

[raffles the gentleman thug] 30/9/2016 15:28

spoole5 13 Sep '16 - 11:25 - 1876 of 2000
Monotonous but IN-correct.

[raffles the gentleman thug] 30/9/2016 15:27

spoole5 14 Sep '16 - 00:08 - 1887 of 1999
Will they have enough good news to justify knocking back 240? If not the market will be brutal and itv's refusal to go higher will be justified.

[raffles the gentleman thug] 30/9/2016 15:22

spoole5 8 Sep '16 - 11:28 - 1835 of 1998
They are going to need to come out with some trading statement to stop this going below 2 quid.

[raffles the gentleman thug] 30/9/2016 15:19

spoole5 30 Sep '16 - 08:17 - 1986 of 1996
Nothing here to indicate that without a takeover this is going nowhere.

[tini5] 30/9/2016 15:19

Resistance at 233 chart-wise...allegedly.

[morph7] 30/9/2016 15:14

Swimming against the tide nicely today. Red everywhere...

[raffles the gentleman thug] 30/9/2016 09:49

Edison who research the stock have raised their numbers by 4% for the current year and 2% for next year, based upon fx considerations. They have it trading on 10.7x current year earnings and 9.0x forward earnings - so shares are dirt cheap. Interesting their comment on the film library valuation is as follows:

Historically, eOne was required to undertake an independent valuation of its library annually to support its banking facilities. Last year’s refinancing means this is no longer a requirement. However, eOne continues to provide this valuation to the market. The most recent valuation, dated 31 March 2016, was conducted by Salem Partners (it previously used FTI Consulting). The $1.5bn is a c 50% increase on the previous valuation, primarily reflecting a strong performance from the group’s Family properties, and the additional 35% interest in Peppa Pig, acquired for £140m ($182m) in October 2015. Although detail has not been provided on the basis on which this valuation has been made we understand that the discount rate and allocated overhead costs are consistent with those used in the March 2015 valuation (8.3% WACC and 6% overhead allocation). At a US$:GBP exchange rate of 1.3, this converts to a library valuation of £1.2bn.

eOne’s EV is £1.2bn (including production finance), or about £1.3bn including the minority value of 51%-owned MGC (since the library value includes 100% of MGC’s library, which is all available for distribution through eOne’s network). Even allowing for some need to adjust for other Television JV minorities, this suggests that the greater part of eOne’s market value is underpinned by the library, leaving little in the rating for its extensive production and sales network.