Entertainment One’s revised film strategy led to a 9% drop in group revenues, although the business was boosted by its Peppa Pig-fronted family division.
eOne saw revenues drop from £1.03B to £941M as part of its full-year financial results through to the end of March 2019. Pre-tax profits fell 43% to £36.8M from £64.9M. The company posted its results to the London Stock Exchange this morning.
This comes after eOne brought together its film and television units, which the company said would bring in up to £15M of annualized cost savings by the end of its next financial year. The studio released fewer films in the last twelve months than it previously had done with titles including Green Book and Vice.
It highlighted its forthcoming slate of films including Poms, starring Diane Keaton, Guillermo Del Toro’s Scary Stories To Tell In The Dark and Jessie Buckley’s Wild Rose.
However, its family and brands division revenue was up by 28% thanks to the success of shows including Peppa Pig and PJ Masks. It highlighted forthcoming titles including Ricky Zoom, which is set to launch on Chinese SVOD service Youku in the summer as well as its new production Ninja Express.
CEO Darren Throop said, “The work and organisational shifts that we have accomplished over the last few years have positioned the business well in the marketplace, as we reinforced our content creation and ownership anchor and expanded our end-to-end capabilities to ensure we maximise our ability to unlock the power and value of creativity.”
He added, “Our underlying EBITDA for FY19 is testament to our future-facing strategy, the breadth of our portfolio and platform-agnostic approach and reflects our stronger position in the market. We remain focused on building the leading talent-driven entertainment company in the world and are confident that in the period ahead we will continue to attract outstanding talent and deliver the highest quality content across all areas of our business.”
Chairman Allan Leighton said,”FY19 has been another year of impressive earnings growth for Entertainment One, with the Group’s streamlined structure and talent-driven approach positioning it well in vibrant and dynamic content markets. Our focus on developing relationships with the best creatives in the industry and our deep customer reach give me confidence for the year ahead and beyond. As such, the Board is pleased to increase the dividend by 7% to 1.5 pence per share, in line with its progressive dividend policy.”