A bumper set of results from Entertainment One (E1) was overshadowed by news that the movie distributor has held bid talks with Canadian film producer Alliance Films. Analysts say the acquisition could cost more than $300m (£191m) which is higher than E1's senior debt facility of $224m (£143m). Management say a deal, if it materialises, would be funded via debt and equity, implying a potentially significant equity fundraise.
In the year to March, E1's underlying pre-tax profits soared a third to £43m underpinned by strong growth in both film and TV. The fourth instalment of the Twilight Saga helped drive film revenues up by 17 per cent to £272m, with 152 releases generating $212m in box office takings. Moreover, a deal with online streaming service LOVEFiLM helped double digital revenues to £66m.