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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

FY18 EBITDA increased 11% with growth coming from the higher-margin Family & Brands and Television divisions, offset by fewer titles released in Film. In FY19 we forecast another strong year from Peppa Pig and PJ Masks, which we believe could overtake Peppa Pig by 2021. We expect a more stable performance from Film and the production pipeline looks solid with a healthy mix of new and renewed content. More than two-thirds of film and television content is now generated from own productions, where eOne has a greater degree of control and more limited financial exposure, key subsidiaries are under full ownership and Family has an expanding portfolio of global properties. We think the discount to peers is unjustified, with a SOTP valuation pointing to 352-377p.

Last updated on 27/07/2018

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 17.7 4.4
2017A 1082.7 160.2 129.9 20.0 17.2 3.5
2018E 1044.5 177.3 144.4 21.9 15.7 3.3
2019E 1208.6 193.4 154.9 23.6 14.5 2.8

Last updated on 23/07/2018

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 27/07/2018

Key management

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

Company address

134 Peter Street
Suite 700
M5V 2H2
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