Entertainment One Swings to Half-Year Loss, Revenue Slips

Peppa Pig

One-off costs from a restructuring of its film distribution business affected the Peppa Pig owner.

Canadian producer and distributor Entertainment One on Tuesday reported weaker financials for the first half of its fiscal year as it swung to a loss due to one-off charges for restructuring its film distribution unit.

The Canadian company posted a first-half pre-tax loss of $51.4 million for the six months to Sept. 30, compared with a profit of $3.0 million for the year-ago period. Toronto-based eOne recorded one-time items of $76.2 million related to a restructuring of its film distribution business, compared with year-ago one-time items of $4.4 million.

Overall revenue for the company, which trades on the London Stock Exchange, was down 2 percent to $520 million as the family and brands division saw a 29 percent jump in revenue, in part from sales of its Peppa Pig kids property in the Chinese market. That was offset by a 7 percent drop in revenue at the newly combined film and TV division, which includes Sierra/Affinity and the Mark Gordon Company.

"The first-half performance saw strong growth in family and brands, scripted drama, non-scripted and SVOD revenues in film and television," said eOne CEO Darren Throop. "This was achieved as we continued to transition our film distribution activities toward production."

He added: "Prospects remain bright, and eOne is on track to deliver (a full-year) financial performance in line with management expectations."