Entertainment One Sees Sales Fall on Weaker Box Office
Canada's 'Hunger Games' distributor saw strong first quarter TV division growth offset the impact of fewer film releases and currency conversions.
Entertainment One's sales fell during its first quarter, due to lighter sales generated from its films at the box office and on DVD.
The indie studio, which releases the Hunger Games and Divergent movie franchises in Canada and the U.K., in its latest trading update indicated overall revenue rose 1 percent on a reported basis. But on a constant currency and pro-forma basis, group sales for the FTSE 250 company fell 2 percent during the three months to June 30.
First quarter box office takings fell 9 percent to $64 million, against a year-earlier $72 million, due to fewer movie and DVD releases. eOne pointed to later-year releases like The Hunger Games: Mockingjay, Part 2 and Quentin Tarantino's The Hateful Eight to help its full-year underlying earnings fall in line with current expectations.
Elsewhere, TV revenue rose 32 percent on a constant currency and on a pro-forma basis, boosted by sales of eOne's Peppa Pig series worldwide and its recent acquisition of The Mark Gordon Company. Toronto-based eOne is looking to do more global TV series with international partners and co-productions for the U.S. market.
The indie studio has TV production arms in Canada, the U.S., the U.K. and Australia. At the same time, first quarter reported revenues and earnings were impacted by the rising value of the British pound, compared to the dollar conversion in major markets like Canada, the U.S. and Australia where eOne operates.
Shares in eOne trade on the London Stock Exchange.