Entertainment One Share Discussion Threads

[suetballs] 30/1/2018 07:17

Yes but excluded as usual!
Suet

[melody9999] 30/1/2018 07:06

just 2.3% discount.

[masurenguy] 30/1/2018 00:07

Entertainment One acquires studio behind Designated Survivor, Grey's Anatomy

Peppa Pig owner Entertainment One has agreed to acquire the remaining 49% share of the Mark Gordon Company following the successful performance of the business so far, with TV guru Mark Gordon to join the London-listed company as president and chief content officer. The MGC studio's acquisition, which is expected to boost earnings 2% in its first full year, will cost eOne a total sum of $209m, made up of $160m cash and $49m of shares. This represents a takeover multiple of just under nine times consensus EBITDA. A £53m ($75m) placing will part-finance the deal, with the remainder expected to be financed by issuing new debt.

In the 2017 financial year, with 51% of MCG owned by eOne, the studio's revenue surged to £119.9m from £14.6m in 2016, growing 721%. In the six months ended 30 September 2017, MGC's unaudited revenue was £51.6m compared to £28.3m in the equivalent period in 2016, growing by 82%, with unaudited underlying EBITDA of £9.9m up 10% from £9.0m. As of 30 September 2017, MGC had unaudited gross assets of £210.6m.

Directors of eOne believe the acquisition "will further strengthen the company's position as a leading global content business" as it transitions its operating structure to unify its film and television operations into a single division, a process that the board believes will be further facilitated by the acquisition. MGC is currently in production on several established TV series including 'Ray Donovan' for Showtime, 'Grey's Anatomy' for ABC, 'Criminal Minds' for CBS, and also serves as lead studio for the 'Designated Survivor' series starring Kiefer Sutherland and a pilot for 'Las Reinas' for ABC.

Commenting on the acquisition, eOne CEO, Darren Throop, said the acquisition was "an exciting time" for both parties "and a natural step in our strategy of creating and owning high quality content". "We would like to welcome Mark Gordon into his new and expanded role with eOne and look forward to seeing our Television and Film operations continue to make great progress under his leadership."

[davr0s] 29/1/2018 20:23

I expect not. It'll all be likely done by 7am. Hopefully with not too much discount

[lancasterbomber] 29/1/2018 20:17

Will retail investors be able to participate in the placing?

[melody9999] 29/1/2018 19:01

A tad surprised that I am first to comment on the announcements after market close today.

The placing is surely a done deal and expect we'll find out the price prior to market open tomorrow.

I'll let others provide some financial commentary. However this bit stood out for me.

As part of the Consideration, Mark Gordon will receive US$49m in eOne shares, underlining his belief in, and commitment to, the Group's strategy. The Company also anticipates that with Mark Gordon in this role, its ability to attract creative talent and partners will be enhanced, generating new content opportunities.

So he is certainly incentivised to perform.

[volsung] 27/1/2018 11:23

Haven't seen PJ masks yet. Will youtube

[masurenguy] 27/1/2018 10:57

Good spot Neilsy.

[neilsy] 27/1/2018 07:55

Interesting snippet from a Darren Throop interview.

"[PJ Masks is] three little superheroes. They're kids that change into their costumes at night and go out and solve problems and crimes. And it's exploding. It'll probably parallel or surpass Peppa Pig in merchandise sales this year at about $1.5 billion."

So PJ masks is overtaking Peppa Pig for sales.

[volsung] 23/1/2018 15:18

Time to top up time.

[gersemi] 04/1/2018 19:45

IC Tip -


Buy Entertainment One, before it's gone

TAKEOVER TIP OF THE YEAR: The group’s library of quality film and TV content makes it look like a prime takeover target for a big media group

[neilsy] 29/12/2017 10:51

Looking very strong again today.

[masurenguy] 29/12/2017 09:01

This mornings shareprice of 325p constitutes a new ATH and is the equivalent of circa 450p pre-dilution two years ago. It also clearly demonstrates that the ETO board were absolutely right to reject the ITV offer of 236p last year. Furthermore, it also validates the CPPB investment here, with their subsequent average cost of 230p per share for their 20% stake, after they initially acquired the original Marwyn shareholding in ETO just over two years ago.

[volsung] 22/12/2017 09:06

Nice when a plan comes together

[volsung] 19/12/2017 08:42

Bought a few more. New highs soon.

[masurenguy] 16/12/2017 13:17

Yesterday produced the largest daily trading volume over the past 15 months.
Shareprice has also doubled over the past 20 months and is up 31% this year.

[masurenguy] 13/12/2017 09:53

Broker tips: Entertainment One
Tuesday 12 December

"Analysts at Credit Suisse hiked their target price on shares of Entertainment One, telling clients it was no longer a one pig show, given the rapid growth of its PJ Masks franchise. "The Family business continues to be Entertainment One's fastest growing, most profitable business. The rapid growth of PJMasks should encourage investors as it diversifies the Family business which has previously relied on one show (Peppa Pig)."

Following the film and TV producer's first half financials, the Swiss broker lifted its earnings per share forecasts for 2018 and 2019 by 5% and 11%, respectively. In turn, that saw their target price - which was based on a discounted cash flow methodology - for the stock improve 205p to 280p. Some of the other assumptions underlying the DCF valuation were a weighted average cost of capital of 10.4% and a terminal value of 2%, with Credit Suisse specifically stating that EPS revisions were the main driver behind the higher target price.

Potentially, there was also upside to be had from the "rebalancing" of the Film unit away from distribution and towards production, because it would allow the company to enjoy the upside from selling the shows it owns globally. However, the broker kept its recommendation at 'neutral'."

[neilsy] 04/12/2017 17:27

"On the coproduction front, Yeung says eOne is close to a deal that will see an “significant” title from the company catalogue remade for “a well established” channel in China."

[volsung] 22/11/2017 14:30

Always good to take profits. However 300p was a considerable psychological resistance so it could now be veiwed as a strong support

[1gw] 22/11/2017 07:32

Can't this still be viewed as the breakout from 250 though? So 60 points on the breakout is pretty impressive and compares with the earlier breakout from 200.

But it may well have further to go. Perhaps I was just looking for an excuse to take profits. I'm interested to see what the brokers ( and Edison) say, in particular whether there's any adverse comment on the restatements.

[davr0s] 22/11/2017 07:23

Agreed - I'm looking to add now

[volsung] 22/11/2017 07:13

This is a breakout. Not a good time to sell.

[laugher] 21/11/2017 22:13

Well done on banking a profit Marles. Best wishes with your next investment.

[marles] 21/11/2017 21:03

Half year profit 0.8m.Really! No wonder they use adjusted profits as they are not really making a real profit.Cash flow is terrible. Throop spends shareholders cash like water enriching himself and building an empire rather than trying to make cash profits. Probably another rights issue when shares hit 350p for more acquisitions. I remember the last rights issue when shares hit 140.Board are reckless with cash and very greedy. I got out today at 300 ish. Company is in a hot sector but how do you value a library of content. Todays top content is tomorrow's junk. Libraries depreciate with fickle audiences. Content costs much cash to keep fresh and modern. Only upside is a possible takeover or Throop disappearing.Only value is Peppa and PJ although Mark Gordon is much valued and a predator might buy ETO and split it up. Be careful if Canadians sell up as they are on inside track, so to speak.

[1gw] 21/11/2017 15:46

And sold my remaining holding at 308p. It's been a good investment so shall have to hope for a pullback to get back in.