A whopping $2.4bn (£1.8bn) was spent on Peppa Pig and PJ Masks merchandise in the year to March 2018 – that’s a credit to the enduring brands Entertainment One (ETO) has created in its family division. But the group’s chief executive, Darren Throop, insists this is not a one (or even a two) trick pony – there are eight more family projects in the pipeline, with two due to be launched later this year. Although these titles require several years of work, they’re worth the wait: PJ Masks retail sales grew from $300m to $1bn within just one year, netting £48.8m for eOne.
The strong momentum in the family business offset weakness in film, where a lower number of releases dragged revenues down 32 per cent to £402m. But the outlook for film – which is being combined with the high-performing TV business – remains positive thanks to the huge demand for original content. Netflix may be upping investment in its own original content, but Mr Throop is confident it will continue to rely on the impressive originality and creativity of eOne – perhaps one day the US digital TV giant will want to bring the whole of eOne under its control.
In the year to March 2019, broker Numis expects pre-tax profits and earnings per share of £155m and 24.2p, respectively (from £144m and 21.9p in FY2018).
| ENTERTAINMENT ONE (ETO) | ||||
| ORD PRICE: | 291p | MARKET VALUE: | £1.34bn | |
| TOUCH: | 290.4-291p | 12-MONTH HIGH: | 334p | LOW: 211p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 143p* | NET DEBT: | 45% | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 0.82 | 21.5 | 7.2 | 1.0 |
| 2015 | 0.79 | 44.0 | 12.7 | 1.1 |
| 2016 | 0.80 | 47.9 | 9.8 | 1.2 |
| 2017 (restated) | 1.08 | 35.9 | 2.7 | 1.3 |
| 2018 | 1.04 | 77.6 | 14.8 | 2.4 |
| % change | -4 | +116 | +448 | +85 |
| Ex-div: | 5 Jul | |||
| Payment: | 7 Sep | |||
| *Includes intangible assets of £624m, or 135p a share | ||||
