Entertainment One Full-Year Earnings Fall on Film Business Restructuring
The 'Designated Survivor' producer saw revenue rise sharply but took a write-down to end a deal with a film partner.
Entertainment One on Tuesday posted lower full-year earnings, even as revenue rose, driven by a big write-down to revamp its film division to focus on digital content.
Pre-tax earnings at the Toronto-based studio, which trades on the London Stock Exchange, fell 22 percent to £37 million ($48.2 million) on one-time items, including a £20 million ($26 million) write-down to overhaul its film business.
Full-year revenue rose 35 percent to £1.08 billion ($1.4 billion), driven by strong growth in TV and family division revenue, including a contribution from the previously acquired Mark Gordon Company, producer of Designated Survivor.
"It is particularly noteworthy that this performance includes significant organic growth and has been delivered against a backdrop of a recovering film business after two years of market volatility," CEO Darren Throop said.
eOne said it continues to reshape its film division through physical distribution partnerships with Fox and Sony.
The company aims to exit its own physical distribution activities to focus on digital content. That digital drive includes a new deal unveiled Tuesday for eOne to license TV series on the new SVOD Showmax in Poland. The series headed to Showmax include Hell on Wheels, Washington Spies, Welcome to Sweden, and The Firm.