Entertainment One Share Discussion Threads

[justin1117] 23/11/2016 11:04

You are talking absolute rubbish

[1gw] 22/11/2016 18:08

I'm not sure you should be expecting a lot of cash for shareholders if you buy into a company that is aiming to double in size through acquisition and organic investment!

[gswredland] 22/11/2016 17:27

Let us know when you are back in Rivaldo!
Have a lot of respect for your investment decisions.
Thanks

[spoole5] 22/11/2016 17:24

Without a bid these will be below 2 quid soon. Itv completely vindicated in their decision not to pay more. Will this company every generate cash for shareholders?

[staylow1] 22/11/2016 16:42

Big volume sells in the auction. 1/2 million maybe.

[1gw] 22/11/2016 16:23

Don't know about that Masurenguy. There's an awful lot of AT trades going through for it to be mainly PIs - looks like program trading to me which could be private or institutional couldn't it?

[masurenguy] 22/11/2016 16:02

Almost entirely small PI's selling today with an average transaction of 1375 shares or circa £3000 in value.

[azure8269] 22/11/2016 12:51

Surprise, surprise, here come the big buyers, having waited for the short termers to exit.
A 6 month view might be 1) they hit the full year and the price recovers. 2) They don’t and the price drops at results to 180 which then opens up bidders who want the library
What a good fit to ITV. If these results are due to cos and admin both would be sorted by the ITV team. Presumably the CFO has paid the price (the write 3 letters – see below)
CTO chairman and ITV ceo are both ex ASDA recovery with Archie Norman. Allan L CTO ch did a great job with Pace at a great sale price, so it must be the big holders (3 with 50%) who blocked it. I think they will also take the 6 month view above.
Just my view DYOR
3 letters:-
Man taking new job goes in early and bumps into his predecessor, and asks for any tips.
Predecessor says I left you 3 letters in desk top draw – any bad results open letters in order
After a month some bad result so opens the first letter which says blame your immediate predecessor. Which he does and the board accepts
Next set of bad results he opens 2nd letter which says blame you immediate subordinate and sack him. Which he does and the board accepts
At the next set off bad results he quite relaxed with another letter left which he opens and it says
” Write 3 letters!”

[neilsy] 22/11/2016 11:24

Numis with a hold and 215p target.

Shares in Entertainment One Ltd (LON:ETO) collapsed on Tuesday Morning after the Peppa Pig owner’s interim results failed to live up to expectations.

Underlying earnings (EBITDA) fell to £38mln for the six months ended 30 September, well down on the £52mln eOne posted for the same period last year, despite revenues actually increasing by almost 20% to £401mln (1H 2015: £337mln).

Normalised profit before tax also slipped sharply to £23.8mln, wildly missing City broker Numis’ expectations of £37.5mln.

The film and TV distribution firm said investment into its theatrical and film arm was behind the drop and expects this to drive second half performance, but the City was unimpressed nonetheless.

The wider markets didn’t react well either, with the share price posting a double digit fall in early trading.

Numis did hold out some hope for the group though, pointing out that eOne has “good visibility over its performance in the second half and is on track to deliver full-year results in line with expectations.”

It wasn’t enough to change the broker’s generally downbeat assessment of the stock though, and it retained its ‘hold’ recommendation and price target of 215p from Entertainment One.

eOne has been in the news quite a lot over the past few months after it rejected a £1bn takeover offer from UK broadcasting heavyweight ITV PLC (LON:ITV) back in August.

At the time, the Canadian firm claimed that the offer “fundamentally undervalues the company and its prospects.”

Shares in eOne slumped by 12%, or 30p, to 216p.

[morph7] 22/11/2016 11:23

Morph is out.

And I'll be back when ETO has new leadership. To many ifs and buts. And as for the CFO leaving...will be interesting to hear the reasons why.

[neilsy] 22/11/2016 11:13

Disappointing healdine numbers so sold 25% of my holding this morning in case it drifts down after results.
Will keep most as the long term picture is still good.

A brief mention of the peppa pig cinema release.

"A theatrical release for Peppa Pig: My First Cinema Experience featuring new interstitial content and never-before-seen episodes from series four is planned in the UK and Australia for Easter 2017"

[rivaldo] 22/11/2016 11:11

I perfectly understand the business model, but never expected such a drastic reduction in profitability considering that H1 "should" have been very successful given the good box office in Film.

Investment going forward is fine, but should be smoothed out over time - no investor likes to see such huge fluctuations in the numbers. The forecasts for this year are now in some doubt - and again, no-one likes doubt. This situation may persist until the year end trading statement.

The CFO's resignation may also have upset a few City apple carts given that he may have been seen as a respectable buffer against Throop having been there for so long.

It's also never a good idea to buy a share purely on the basis of a potential bid.

Above all, it seemed to me that the markets would not like these numbers and there would be an opportunity to sell at a good price, and a very good profit for a second time, and get back in at a much lower price if the numbers were recovered in H2.

[sphere25] 22/11/2016 11:11

ITV pitched their bid really well around that 240 mark. All good and well the broker harping on about the discount to the library valuation, but what about the ever increasing debt, related content spend and continued lack of free cash generation.

Good to see folk selling out here, they've been promising jam for years now. They should have been generating a ton of free cash by now, but instead they diluted shareholders and raised more debt.

-12% is absolutely justified.

Stock is worth less than £2 imo without the current bid premium the market is pricing in. An acquirer should then offer a premium around where ITV pitched, and if there is no activism and Throop has continued to make a mess, Canada Pension Plan will have to accept they made a huge mistake investing here and accept the offer.

[raffles the gentleman thug] 22/11/2016 11:04

And I think itv have their own problems which is probably exactly why they didn't buy EOne in first place.

But I am happy with things here given incredible level of investment going into future growth. Problem is really for those banking on great numbers who clearly don't understand immediate upfront investments required in film distribution and production

[raffles the gentleman thug] 22/11/2016 11:04

And I think itv have their own problems which is probably exactly why they didn't buy EOne in first place.

But I am happy with things here given incredible level of investment going into future growth. Problem is really for those banking on great numbers who clearly don't understand immediate upfront investments required in film distribution and production

[tini5] 22/11/2016 10:50

This will still bear fruit. Patience is key - a lesson I have learnt the hard way this morning with LVD....

[raffles the gentleman thug] 22/11/2016 10:47

Perhaps ianood - there is not a great deal I am personally concerned about and shares doing exactly the same as they did on last results - but it's abundantany clear few understand the business model on here

[tini5] 22/11/2016 10:47

Indeed ianood. Seems a total overreaction.

[kendonagasaki] 22/11/2016 10:46

Debt is going to kill them sooner or later?

[kendonagasaki] 22/11/2016 10:46

Looks like a bad miss and I can see this bouncing down to £1.78 then breaching 1.60.Totally over valued as I said earlier!

[ianood] 22/11/2016 10:32

RTGT - to my mind, this misunderstood sell off, is playing right in to ITV's hands!

[salpara111] 22/11/2016 10:22

Like an awful lot of holders l have had enough of the jam tomorrow story. It is up to management to manage the long term investment profile so they don't get these large swings in profitability. I may consider buying again but definitely below 200

[napoleon 14th] 22/11/2016 09:47

I'm out as well. Bored with jam tomorrow & this staement did it!
Had sold 1/3rd in sept, 1/3rd in oct, so over & out for now.

[hutch_pod] 22/11/2016 09:36

Well put 1gw. It is a bit ironic that 'underlying' EBITDA has to normalise in the 2nd half...