ETO announced trading update for the six months ending 30 September 2018. It reported that trading was consistent with trends outlined at the start of the financial year. ETO expects full year financial performance to be in line with management expectations, with a similar H1/H2 weighting to FY18.
Family & Brands continues to perform strongly, driven by ongoing consumer product roll-outs across a growing number of licensing contracts and SVOD deals.
In Film & Television, a number of new scripted and unscripted television series were delivered during the period, with a robust pipeline of new series set up for development with partners.
Independent library valuation increased to $2.0bn as at 31 March 2018 (2017: $1.7bn), including the impact of a £64m one-off charge largely related to the impairment of certain assets in the film distribution business.
ETO expects group net debt to EBITDA to be about 1.8x at the end of the current financial year, in line with its previous guidance.
Darren Throop, ETO’s CEO, commented: “Entertainment One continues to execute its strategy to build a portfolio of the highest quality content. We continue to seek out strong creative partnerships, in line with our vision of building the leading talent-driven entertainment company in the world. Our momentum remains strong, supported by long-term industry trends and new territorial opportunities. The group’s ongoing commitment to investing in its content portfolio has driven current year earnings and created future value, reflected in another increase in the independent library valuation.”