StockMarketWire.com - Entertainment One reported a sharp fall in profits as lower revenue from Film, Television & Music dented performance.


For the 12 months ended of 31 March, reported pre-tax profits fell 43% to £36.8m, while revenue decreased by 13% to £789.4m.

But group adjusted profit before tax was up 20% at £156m.

The fall in revenue was due to 'lower transactional, broadcast and licensing and production and other revenue driven by lower film release volume, home entertainment market decline and scripted television slate composition,' the company said.


Film investment in acquired content reduced by £32.4m to £72.1m due to the 'lower volume film slate as expected and in line with our strategy to shift investment from acquisitions to productions.'

The company also said it completed its integration of its film and television divisions, and was on track to deliver £13-15m in annualised cost savings by end of 2020.

But the family & Brands division continued to generate strong growth, with revenue for the year up 28% to £158.5m, driven by the 'continued strong performance of Peppa Pig, significant growth from PJ Masks and the delivery of a new show, Cupcake & Dino: General Services,' the company said.

Licensing and merchandising revenue in the division grew by 13% to £89.4m following US$2.52bn of retail sales in the year, up from US$2.38bn a year earlier, but growth was impacted by the 'slower, more measured roll out of merchandise in China and the closure of Toys R Us particularly in the US,'  it added.



Peppa Pig continued to grow in the year with revenue growth of 20% to £90.2m, driven by SVOD and AVOD revenues as well as TV broadcast renewals in the year.

The full year dividend was increased 7% to 1.5p per share from 1.4p a year earlier.

Looking ahead, Peppa Pig and PJ Masks were expected to continue growth in 2020 with new brand Ricky Zoom also expected to boost the family & brands business, which was forecast to have close to 1,800 live licensing and merchandising contracts by the end of 2020.

'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,' said Allan Leighton, Chairman.


At 8:44am: [LON:ETO] Entertainment One Group share price was -9.9p at 450.5p



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