Entertainment One Share Discussion Threads

[momentofclarity] 25/5/2018 16:52

•Entertainment One (ETO LN +6.3%) has “significant valuation upside” particularly in co.’s family operations, which house the Peppa Pig franchise, JPMorgan said in a note to clients. The stock also has M&A upside, with value to other media companies highlighted by ITV’s preliminary proposal in 2016.

[rog100] 25/5/2018 15:29

Entertainment One, up 2.7% JPMorgan raised the price target for the entertainment content provider to 423 pence from 376p, retaining its overweight rating. On Tuesday, Entertainment One said pretax profit in the year ended March 31 increased to GBP77.6 million from GBP35.9 million the prior year, despite revenue dropping 4.0% to GBP1.04 billion from GBP1.08 billion in 2017 financial year, with a reduced performance in the Film division.
Price now 300.20 up 6.83% 19.26P

[pete160] 25/5/2018 13:45

With a 6%+ jump today do folks reckon something meaningful going on here, or just an upgrade from someone?

[masurenguy] 25/5/2018 11:41

Positive move north this morning. Key threshold now will be to close above 300p in the near future.

[pete160] 22/5/2018 18:39

Thank you for the replies.
I've got a stake here (5% of pot) but just wondering whether to up it

[tomps2] 22/5/2018 12:25

ETO analyst presentation from this morning 22.5.18

CEO Darren Throop & CFO Joe Sparacio present the Groups’ Full year results to 31st of March 2018.



Darren Throop, (CEO) Introduction & Highlights – 00:18
Joe Sparacio (CFO) Financial Review – 17:38
Joe Sparacio (CFO) Outlook & Summary – 29:18
Q&A – 33:41

[masurenguy] 22/5/2018 10:13

FWIW I have been of the view for several years that this company will be acquired by a larger entity in due course that is already in the media sector for its production capabilities, it's existing content library and the ongoing revenue streams from character programming and merchandise led by Perra Pig, PJ Masks & Ben and Holly.

There have been approaches and offers in the past, the most recent one being from ITV, but these have been rejected by the Board as being undervalued. At the moment I would consider that the BoD and CPPB would need to see an offer north of 350p in order to give it serious consideration. However, your guess is as good as mine in terms of when any viable approach might be made and/or by whom !

[zulu_principle] 22/5/2018 09:43

Pete - short answer is "yes".

I see this as a good takeover target for the content library (though I question its valuation) and ETO's relationships with other major production companies. However I think Peppa / PJ are possibly the more attractive elements at present so it might fit well with Disney. Apple are also ramping up their TV offering and will need content.

On the other hand it might just continue to be a slow burner. Happy to continue holding for now (not forever) but not happy with the level of cash generation.

[pete160] 22/5/2018 09:25

A qu. to the more experienced members of this board please.

Do you think that these results will make a takeover more or less likely in the short /medium term ? (if at all?)

As others note, there appears nothing wonderful or dreadful about these results.
The shares don't appear overvalued and the firm appears to have a lot of potential going forward.

Do you think the likes of ITV, Sky/Disney, Amazon, Netflix, Comcast, (Liberty?) etc, will see a t/o as a relatively cheap way of buying content and production, or should we just see this as a slow burner ?

Constructive thoughts appreciated :-)
thanks

[zulu_principle] 22/5/2018 09:10

Not a bad set of results but cash generation continues to be a problem as it has for several years now. Continuing to hold but not adding.

[neilsy] 22/5/2018 08:51

Results saved by PJ masks, who would have thought it.

[masurenguy] 22/5/2018 07:52

Edison bullish about revaluation metrics and the prospects for PJ Masks eventually becoming bigger than Peppa Pig !

Entertainment One: On course to double EBITDA by 2020

An excellent performance from Family & Brands and strong growth in Television offset declines in Film to deliver EBITDA growth of 11%, which is in line with forecasts. The group is in good shape entering FY19 and is on track to deliver to its five-year plan to double EBITDA by 2020. The shares trade at a c 20% EBITDA discount and c 40% P/E discount to global peers on FY19 multiples. While an element of discount may be warranted given the weak cash conversion in recent years, the risk profile of the group has considerably improved and this discount seems exaggerated. More than two-thirds of film and television content is now generated from own productions, where eOne has a greater degree of control and more limited financial exposure, key subsidiaries are under full ownership and Family has an expanding portfolio of global properties.

In FY19 we forecast another strong year from Peppa Pig, which continues to expand in newer markets, and from PJ Masks, which we believe could overtake Peppa Pig in terms of revenues by 2021. We expect a more stable performance from Film, although with only 25% of budgeted investment targeted at film content, it is the smaller part of the newly merged Film, Television and Digital (FTD) division. The production pipeline looks solid with a healthy mix of new and renewed content, although with only 40% of TV content committed due to variations in the commissioning cycles, visibility is lower than typical. We trim our FY19 EBITDA forecast by 2%, taking account of the impact of IFRS15, and an EBITDA forecast of £215m for 2020; in line with management’s 5-year plan to double EBITDA.

[tomps2] 22/5/2018 07:29

Entertainment One (ETO) results interview May 2018


Entertainment One CEO Darren Throop talks about the groups’ full year results to 31st March 2018.



Financial Highlighlights – 00:19
Family and Brands ahead of expectations – 00:41
Continued growth in Television – 01:44
Reshaping of Film progressing well – 03:07
High quality content is the heart of what ETO do – 04:05
Summary and Outlook – 05:04

[cerrito] 20/5/2018 10:02

zulu_principle I did watch designated survivor till the series end this week; I was unaware of ETO's involvement and am surprised that it was sufficiently important to merit a RNS. Like you I am continuing to hold.

[zulu_principle] 14/5/2018 10:17

Given the breadth of ETO's business and the currently supportive environment for content developers this drop has to be an overstatement IMO (how many people who enjoyed series one of Designated Survivor have stuck with it beyond the first few episodes of series two - my only surprise is that it was even being considered for a third series). Not adding any more but continuing to hold.

[yf23_1] 06/5/2018 00:54

Why no RNS ???

This is from Daily Mail market report 3 May...

Entertainment One shot to the top of the FTSE 350 after signing a multi-year deal to co-produce shows with Fired Up Films.

Fired Up was established last year by Simon Howley and Jon-Barrie Waddell, who both worked on popular 1990s early morning show The Big Breakfast.

It follows hot on the heels of eOne’s deal earlier this month to buy a controlling stake in Ex on the Beach producer Whizz Kid Entertainment. Shares jumped 4.9 per cent, or 13.2p, to 285.2p.

[marles] 04/5/2018 22:45

Might just be Peel Hunt broker note giving target price of 300p. Released yesterday and market makers would have known about it and put price up to cover themselves if there was a lot of buying. Price seems to have fallen back a bit today. Maybe the volume was too low to hint at any major news afoot. However, one day.......

[masurenguy] 04/5/2018 09:14

Hmm....could be somethings up here with a significant 2nd day rise on very minimal trading volumes !

[marles] 03/5/2018 22:25

I visited this site to try to find out why the bounce. If it goes up a bit more tomorrow maybe there is news afoot and this is some insider buying. Sooner or later someone will bid for ETO even though I am not a fan of Throopy as he is very over rated but with all the current activity with Disney/Sky there is more consolidation to come in the sector.

[masurenguy] 03/5/2018 13:39

Strong move up today on very minimal trading volumes !

[2bluelynn] 30/4/2018 18:44

Sorry here's the link if any body is interested? Just found it https://news.sky.com/story/subversive-peppa-pig-faces-chinese-web-crackdown-11354066

[2bluelynn] 30/4/2018 18:39

The cartoon character Peppa Pig may be facing a purge on the Chinese web after becoming associated with "subversive" elements"

[2bluelynn] 30/4/2018 18:34

Just seen this on twitter from sky news 'Subversive' Peppa Pig faces Chinese web crackdownmight effect the share price tomorrow

[masurenguy] 09/4/2018 08:45

New TV production company acquisition !

RNS Number : 1940K
Entertainment One Ltd
09 April 2018

Acquisition of UK-based Whizz Kid Entertainment

Entertainment One Ltd. today announces that it has acquired a 70% controlling stake in Whizz Kid Entertainment Limited ("Whizz Kid"), a UK-based non-scripted TV production company, from the Whizz Kid Sellers. The acquisition further enhances eOne's non-scripted television production capabilities into the UK, in line with the Group's strategy.

Based in the UK, Whizz Kid was founded in 2006 by Malcolm Gerrie, and has gone on to become a fast-growing and successful non-scripted television production company delivering multiple hit shows including nine seasons of Ex on the Beach, the popular format currently being adapted by eOne for MTV in the US, and Lip Sync Battle UK, and has long-standing relationships with key UK broadcasters including the BBC, Sky, Channel 4, ITV and Channel 5. eOne has acquired a 70% controlling stake in Whizz Kid for consideration of £6.9m, which will be satisfied by payment of £5.0m in cash and the issuance of 637,952 Entertainment One Ltd. common shares (the "Consideration Shares"). A distribution of excess cash held by Whizz Kid on closing is expected to result in a payment of approximately £1.6m to the Whizz Kid Sellers. Additionally, put and call options have been agreed, with consideration at a capped amount, which will enable eOne to acquire the remaining 30% stake after a five year period. Whizz Kid's results will be fully consolidated in eOne's financial statements.

In its audited financial statements for the year ended 31 March 2017, Whizz Kid reported revenues of £14.2m, profit before tax of £3.3m and gross assets of £6.3m. Adjusted EBITDA for the year ended 31 March 2017 amounted to "1.6m (2016: £1.0m).
Malcolm Gerrie and Lisa Chapman will continue to lead Whizz Kid and, as part of the transaction, have entered into new, long term employment agreements. In addition, eOne has also entered into a distribution agreement with Whizz Kid, which will provide the Group with access to high quality, non-scripted programming and formats for exploitation globally.

The Whizz Kid Sellers are comprised of: Ingenious Capital Management Ltd., Malcolm Gerrie, Lisa Chapman, Katherine Allen, Lisa McCormack, Terence Back, Tracey Lloyd, Shane Murray and Caroline Roseman. Following completion, applications will be made for the Consideration Shares to be admitted to a premium listing on the Official List and to trading on the London Stock Exchange's Main Market for listed securities (together, "Admission"). It is expected that Admission will take place at 8.00 a.m. on 12 April 2018.

Total voting rights

Following Admission becoming effective, the Company's issued share capital will consist of 460,749,271 common shares with voting rights. Therefore, the total number of voting rights in the Company will be 460,749,271. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Darren Throop, Chief Executive Officer, commented: "The addition of Whizz Kid to eOne's non-scripted television business gives us a strong footing in one of the most creative markets in the world. I'm pleased to welcome Malcolm, Lisa and the Whizz Kid team to the Group, and I'm excited about how this new relationship will deliver great new series on both sides of the Atlantic."