£2844.9m market cap
571p last close
Entertainment One specialises in the development, acquisition, production, financing, distribution and sales of entertainment content. Its rights library is valued at US$2.0bn and is exploited across all media formats.
Investment summary
On 23 August, Entertainment One announced that it has agreed a bid from Hasbro, Inc. at 560p in cash, valuing the group at £3.3bn ($4.0bn). FY19 results showed strong (21%) growth in underlying EBITDA. The Family & Brands division is benefiting from the higher margins from AVoD and SVoD, with underlying EBITDA up 28%. Film, TV & Music’s performance reflects the completion of the transition in film and the shift in mix toward TV, with an improvement in underlying EBITDA margin from 11.6% to 14.6%. In July, eOne reached a multi-year production agreement with Mark Gordon to develop and produce content.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 1029.0 | 163.6 | 124.2 | 19.3 | 29.6 | 5.4 |
| 2019A | 941.2 | 197.6 | 160.0 | 25.0 | 22.8 | 6.3 |
| 2020E | N/A | N/A | N/A | N/A | N/A | N/A |
| 2021E | N/A | N/A | N/A | N/A | N/A | N/A |
| Last updated on 16/09/2019 | ||||||
Industry outlook
SVOD is rapidly gaining share, growing at a reported 20% CAGR. Competition between platforms is driving the requirement for premium content and, despite the proliferation of non-linear distribution channels, there is still a tendency for the audiences to gravitate towards particular hits. This is driving a trend to high production values, with the real underlying competition to grab and maintain audience attention. eOne’s platform-agnostic stance allows it to take good advantage of the market vacillations.
Last updated on 16/09/2019
Sector |
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Share price graph
Balance sheet |
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|---|---|
| Forecast net debt (£m) | 662.2 |
| Forecast gearing ratio (%) | 88 |
Price performance
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12m |
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Key management |
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| Darren Throop | CEO |
| Joe Sparacio | CFO |
| Mitzi Reaugh | Non-executive director |
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