Entertainment One Share Discussion Threads

[neilsy] 17/5/2017 16:13

Brad Weston does have a very impressive cv. No mention of costs, but looks good for the future.

[neilsy] 13/5/2017 10:26

Couple of analyst views

"Neil Wilson, senior market analyst at ETX Capital, said: "Whilst clearly negative for free cash (underlying earnings in the first half of the year were £38m with reported profit before tax of £4m) it is part of an ongoing strategy that is seeing eOne tilt more towards film.

"It had front-loaded a lot of investment in the first half of the year and reported in March that it had delivered ‘significant improvement in profitability’ in the division in the second half. It had said underlying earnings should be in line with last year on box office revenues that were 25% ahead of last year.""

"Investec said new film one-off costs are a near-term negative, but show that ETO is pushing forward with its Film restructuring under the new chief financial officer and making the right pro-active decisions after several years of disappointment in this specific division.

"Film box office performance has already begun to improve, but this should improve mid-term returns on these films. We await more detail at the FY figures on 23 May.""

[masurenguy] 12/5/2017 15:41

Well I have no greater insight into the ramifications from this announcement than anyone else but I think there are two financial points that need to be considered and subsequently clarified.

"As part of the previously announced wider reshaping of the Film Division, Entertainment One has re-negotiated one of its larger film distribution arrangements. The previous arrangement has been terminated and replaced with a new distribution arrangement and, associated with the termination, the Company will make a one-time payment of US$25 million which will be included in the Company's financial results for the year ended 31 March 2017. Management expects underlying profitability and cash flow to improve for films delivered under the new distribution arrangement."

This implies that a one off cost has been incurred in order to terminate an existing agreement in order to replace it with a more financially advantageous agreement going forward. I'd like some substantive detail on this when the results are published but in principle it would appear to be both prudent and appropriate to take this write-off as an exceptional charge in the year than it was incurred.

"In addition, one-off costs have been incurred amounting to approximately GBP27 million which largely relate to the accelerated reshaping of the Company's Film Division, including transitioning its physical distribution activities towards a digital content focused business model. This reshaping is also expected to drive improved underlying profitability and cash flow."

Likewise I'd like to see a more substantive explanation of what this involved and how the cost was incurred or crystallised in the results announcement. However, if this relates to a transitional cost that arises from upgrading physical distribution into digital streaming or download, then I would have thought that this cost might have been amortised over say a 3 year period.

These are clearly accounting issues which need to be clarified but if they are taking a £47m hit in the year just ended then I would like to see their outlook statement anticipate a significant increase in pretax profits this year as a result of the beneficial consequences that they perceive to be gained from the new distribution agreement and the upgrade from physical to digital transmission of content.

[pka3] 12/5/2017 14:50

No information on quantification of profitability and cash flow and the expected time frame of recoverability of this £47m is worrying. It's very easy to say "This reshaping is also expected to drive improved underlying profitability and cash flow." I would have thought that its taken for granted that any form of reshaping takes place to deliver improved profitability and cash flow.

[mip55] 12/5/2017 12:08

1gw thank you for the clarification .....It remains a fact however that the company is going to have find 47m this year that would have gone towards boosting our bottom line. As you say the details are sketchy and it could well be that, in the long term, these one off costs will be justified but short term they will affect this years profitability. It seems that most financial reports today agree that this is a profit warning although thankfully not a serious one.

[1gw] 12/5/2017 11:49

No - management expectations are for "underlying" measures - specifically "underlying EBITDA". One-off costs will be excluded from this measure.

To put this in context, last year (FY16) they reported "underlying EBITDA" of £129m, but an actual profit of just £40m. The difference included various things but in particular £17m of one-off items. This year they are telling us in this morning's RNS that there are £47m of one-off costs.

So this is fairly clearly in my opinion a warning about the level of profit that we are going to see in the accounts on 23rd May. Whether this is a "good thing" or a "bad thing" though depends on the value of what they have got in return for these one-off costs i.e. the improved profitability going forward as a result of taking the hit in FY17.

Since they don't quantify this it is difficult to form a reasonable opinion on whether the value of the company should be higher or lower as a result of this morning's RNS, other than to say that perhaps the communication could have been better and some might discount the company slightly for that. I expect that on 23rd May there will be some more detail from the company on what the deal actually was - and I imagine they will paint it as a positive thing.

[mip55] 12/5/2017 11:28

How is this being regarded as a profit warning?The Company expects to report approximately GBP47 million of one-off costs for the year ended 31 March 2017, whilst continuing to expect that underlying EBITDA for the financial year will be in line with management expectations.Interpretation being that results would have been 47m better if this one off cost had not been incurred. So instead of reporting above management expectations we're going to see in line with figures.

[mr_spock] 12/5/2017 11:03

PJ Masks doing well.

[1gw] 12/5/2017 09:29

Ask the FT?

FT: "Entertainment One to take £47m hit to profits from film division restructuring "

Cityam: "Peppa Pig owner Entertainment One reveals it will bring home less bacon this year due to one-off costs"

[amoore70] 12/5/2017 09:19

How can you interpret this as being a profits warning? I don't see it as such as nor does the market judging how share price is unaffected pretty much.

[ddubzy] 12/5/2017 07:48

Well let's see, hopefully a nice drop to allow additional investment.

[melody9999] 12/5/2017 07:45

1gw - I tend to share that view in the short trem ....though these are one off costs and we are told it will lead to improved longer term profitability - so as a long term holder it is positive.

[tsmith2] 12/5/2017 07:45

Both of cash expenses, not good short term. Dont also quantify benefits going forward..reads like a profits warning

[1gw] 12/5/2017 07:42

Underlying is in line, but statutory is going to take a hit from these one-offs. It's almost as though someone's looked at the final numbers and decided perhaps they really ought to tell shareholders about the further "jam tomorrow" issue because of the disconnect between underlying & statutory. Good news that they've taken action to improve the financials going forward, but an odd communication strategy.

[boonboon] 12/5/2017 07:35

The 25 is in dollars.

[ddubzy] 12/5/2017 07:34

Ignore above I see its quoted in $ & GBP...

[ddubzy] 12/5/2017 07:33

Can't be a warning surely....They mention in-line.....Isn't 25 & 27, 52m??

[1gw] 12/5/2017 07:25

Reads like a warning to me. Otherwise I don't see why they felt the need to disclose this now instead of waiting for 23rd May.

[curlylocks] 12/5/2017 07:23

news out - is this good ?




RNS Number : 9397E

Entertainment One Ltd

12 May 2017


Date: 12 May 2017
On behalf of: Entertainment One Ltd. ('the Company')
Embargoed until: 0700hrs
Entertainment One Ltd.

Film reshaping one-offs drive future profitability

The Company expects to report approximately GBP47 million of one-off costs for the year ended 31 March 2017, whilst continuing to expect that underlying EBITDA for the financial year will be in line with management expectations.

As part of the previously announced wider reshaping of the Film Division, Entertainment One has re-negotiated one of its larger film distribution arrangements. The previous arrangement has been terminated and replaced with a new distribution arrangement and, associated with the termination, the Company will make a one-time payment of US$25 million which will be included in the Company's financial results for the year ended 31 March 2017. Management expects underlying profitability and cash flow to improve for films delivered under the new distribution arrangement.

In addition, one-off costs have been incurred amounting to approximately GBP27 million which largely relate to the accelerated reshaping of the Company's Film Division, including transitioning its physical distribution activities towards a digital content focused business model. This reshaping is also expected to drive improved underlying profitability and cash flow.

Entertainment One Ltd. will announce its results for the financial year ended 31 March 2017 at 7:00am on 23 May 2017.

This announcement contains inside information.

Darren Throop, CEO, commented:

"These changes are part of the reshaping of our Film business for the future and are expected to have a positive impact on both cash flow and underlying EBITDA for the Company."



Enquiries:
Redleaf Communications Rebecca Sanders-Hewett [phone]
David Ison 4730
Susie Hudson [e-mail]

Joe Sparacio [phone]
Entertainment One Ltd. Patrick Yau 7931

[phone]

[neilsy] 10/5/2017 09:14

PJ masks continues to expand worldwide

“The response to PJ Masks around the world has been incredible. The TV series is drawing huge audiences and licensees have been quick to identify the commercial potential of the show’s growing fanbase,” said Andrew Carley, Head of Global Licensing at eOne. “We look forward to harnessing the expertise of our local partners in Asia Pacific and Latin America and expanding our consumer products offering for fans in the UK and Australia.”



New multi series deal with Hulu.

"Entertainment One and Hulu have sealed an exclusive streaming deal for multiple eOne series totaling 240 hours. The pact includes rights to dramatic thriller Cardinal, dramedy Gap Year and other series."

[neilsy] 05/5/2017 15:25

"eOne secures new partners for Peppa Pig"

"Following strong consumer demand, Entertainment One (eOne) has secured a raft of new partners for its pre-school show, Peppa Pig, in the US and Canada.

Boasting over 70 licensees and counting, eOne has secured additional new partners and renewed licensing agreements for the global show.

New partners include the likes of American Greetings and Colgate, plus the firm has secured renewals with Fiesta, Tin Box and more."

“Peppa Pig continues to be a well-loved brand in North America. We’re excited to extend our existing partnerships and cement new relationships with such an outstanding group of companies for the world’s largest market,” said Joan Grasso, VP for licensing North America at eOne Family.

“The upcoming new products will provide Peppa Pig fans with adorable new ways to incorporate their favorite characters, settings and themes from the series into their daily lives.”

[yf23_1] 03/5/2017 21:01

chart looks like a coiled spring.

[werty5] 03/5/2017 19:55

Opps should be between 240 and 250 i am doing us down.

[werty5] 03/5/2017 16:15

This tight range must be ending soon. Feels like we have been bounced between just under 140 to just over 150 and back enough. Patience required here and hopefully rewarded.