Revenues dip slightly for eOne in latest financials

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Strong growth in its family and brands business was offset by declines on the film and TV side, and one-off restructuring costs.

Year-over-year revenues dipped slightly for eOne in the first half of the year, as a strong performance in its family and brands business was offset by declines in its film and TV business and one-off restructuring costs.

The company, traded in British pounds on the London Stock Exchange, on Tuesday (Nov. 20) said its year-over-year revenues had dipped by 2% to $688 million for the six-month period ending Sept. 30.

However, performance in its family and brands business was strong, with revenue up 29% to $129 million in the first half of the year. Peppa Pig was a driver, with revenues up 18% to $70.9 million thanks to SVOD and AVOD revenues, including new and renewed deals with Mango TV, Youku, iQIYI and Tencent in China. According to eOne, the property has now surpassed 100 billion VOD views internationally. In addition, PJ Masks showed an even stronger growth trajectory, with the property’s revenues climbing 44% to $50.8 million for the period.

Meanwhile, revenues in the company’s film and TV business fell by 7% to $563.6 million. Broadcast and licensing revenues increased by 20% to $297.3 million, which eOne attributed to higher film and television SVOD revenues and strong sales of its scripted TV properties to international broadcasters, however revenues derived from theatrical, transactional and production fell by 19%, 45% and 26%, respectively.

Elsewhere in the report, eOne reported a pre-tax loss of $68.0 million, compared with an approximately $3.4 million profit a year ago. The loss was due to one-off restructuring charges of £57.0 million relating to the integration of its film and TV businesses. Included in that was a write-down of home entertainment related inventories of $39.0 million, and $6.63 million in related severance and staff costs of the home entertainment businesses.

EBITDA grew 10% to $102 million, driven by the family and brands business. The company also said the valuation of its independent library has increased to $3.4 billion, up from $2.89 billion in 2017.

The company said it expects a strong second half to the year, including the release of film titles such as Green BookVice and On the Basis of Sex.