Entertainment One (ETO); delivered strong earnings growth for FY19

Published on 21-05-2019 07:31:50
Author Sparks Team

Entertainment One announced full-year results for the year ending 31 March 2019, reporting underlying EBITDA up 21% at £198m, driven by strong growth in Family & Brands and higher margins in Film, Television & Music. The group’s underlying EBITDA margin improved by 510 basis points to 21.0%.

The group also reported revenue of £941m, reflecting continued growth in its Family & Brands segement, as well as lower revenue from Film, Television & Music, largely attributable to the change in film strategy. The group’s adjusted PBT was up 20% at £156m, while the reported PBT was £37m, including one-off charges. Adjusted diluted EPS was up 30% at 25.0p/share.

The integration of its Film and Television operations was completed during the period and is on track to deliver £13m-15m in annualised cost savings by end of FY20. The Family & Brands division is expected to continue to generate strong revenue and underlying EBITDA growth across the portfolio in FY20. Independent library valuation increased to $2.0bn as at 31 March 2018. Year-end net debt leverage stood at 1.7x, slightly better than guidance. Net debt to group underlying EBITDA leverage to be 1.6x in 2020 as per the company’s outlook.

Allan Leighton, Entertainment One’s Chairman, commented: “Our focus on developing relationships with the best creatives in the industry and our deep customer reach give me confidence for the year ahead and beyond.”

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