Entertainment One (ETO)

Business description

Entertainment One (eOne) is a leading international entertainment company that sources, selects and sells films and television content. Its library contains over 40,000 film and TV titles, 4,500 half-hours of TV programming and 45,000 music tracks.

Investment summary

eOne has announced the proposed acquisition of the remaining 49% of the Mark Gordon Company (MGC) for $209m, financed with a mixture of new equity and debt. We estimate that the deal will be slightly earnings accretive in its first year before an anticipated $7-10m of cost synergies. In our view it is a logical extension of the group’s strategy to build a diversified content business.

Last updated on 30/01/2018

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 802.7 129.1 104.1 19.4 15.0 N/A
2017A 1082.7 160.2 129.9 20.0 14.6 N/A
2018E 1076.1 175.1 145.7 22.1 13.2 N/A
2019E 1172.1 196.6 160.6 24.5 11.9 N/A

Last updated on 30/01/2018

Latest video

Executive Interview - Entertainment One

Industry outlook

OTT platforms are having a disruptive effect, helping to drive strong demand for content. Premium content companies like eOne, with a diversified portfolio of content across Television, Film and Family brands, are well placed to satisfy the strong global demand for entertainment content.

Last updated on 13/12/2017

Key management

Darren Throop, CEO
Joe Sparacio, CFO
Mitzi Reaugh, Non-executive director

Company address

134 Peter Street
Suite 700
Toronto
Ontario
M5V 2H2
Canada
+14166462400
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