Entertainment One posts strong half year profit growth

Entertainment One has seen strong growth in its half year profit, and is on track to double the business by 2020.

The FTSE 250 media group posted its interim results for the six months to 30 September on Tuesday.

It said profit before tax jumped to £18.1m from £2.4m in the same time last year.

However adjusted profit only rose 42% from £28.1m to £39.9m for the period.

Reported revenues rose slightly from £330.5m to £337.1m, a 2% increase, driven by increased production and higher international sales in its television business.

The acquisition of a larger stake Peppa Pig producer Astley Baker Davies still has dividends to pay, with the October acquisition not taken into account in the latest results.

However, the company said the franchise has helped its family and licensing division perform strongly, with it generating over 200 new broadcast and licensing agreements in the period, as well as $1bn (£658.8m) of retail sales in the 2015 financial year.

The film division took a hit, largely due to a drop in distribution revenue.

The company only had 96 theatrical releases in the period compared to 134 in 2014 after delayed release schedules across all territories.

Though with around 210 theatrical releases expected for the full year and developing relationships with film makers and distribution partners, including a multi-year renewal of its deal with Amazon Instant Video, it said it is positioning the division for the future.

Chief executive Darren Throop said it has been a robust set of results.

“The group's profitability has improved significantly, with our broad portfolio of entertainment assets continuing to protect the bottom line against the cyclical nature of the market.

“The strong growth in the group's television activities provides greater balance to the group's portfolio whilst enhancing the group's mix of revenues towards higher margin activities.”

Entertainment One also said the outlook for the remainder of the year is positive, with improvement expected in film with a stronger release slate in the second half, and further growth in television programming.

Throop said great content is at the heart of the company.

“Our pipeline for the second half of the year and next financial year is strong and we continue to focus on the premium television series, film and speciality genres which are being demanded by consumers.

“The entertainment market continues to evolve and our differentiated strength as a producer, owner and distributor of content positions eOne as a key beneficiary of the changes that we are seeing in the landscape, and underpins our long term growth prospects.”