eOne Swings to Profit as 'Designated Survivor'-Led TV Gains Offset Lower Film Results
The continued success of 'Peppa Pig' also helped the company's latest financials.
Entertainment One on Tuesday swung to a half-year pretax profit amid growth at its TV unit that offset lower results at its film division, which is its largest business by revenue.
Toronto-based eOne, which reports its results in pounds, posted a pretax profit of 800,000 euro ($1.1 million), compared with a 2.5 million euro (US$3.3 million) loss in the first half of 2016. The group's adjusted pretax profit rose 53 percent to 36 million euro ($47.7 million). Revenue for the six months to Sept. 30 fell 1 percent to 396 million euro ($525 million).
Overall film unit revenue fell 20 percent to 171.8 million euro ($227.5 million) on fewer theatrical releases and lower home entertainment and broadcast revenue. On the TV side, international sales for Designated Survivor via a worldwide streaming rights deal with Netflix outside North America helped overall revenue grow 21 percent to 118.9 million euro ($157.5 million).
eOne recently combined its film and TV production divisions, with Steve Bertram and John Morayniss serving as co-presidents. The studio in Tuesday's earnings report said it will "continue to reshape its film operations as it adapts to the changing marketplace."
eOne owns a 51 percent stake in The Mark Gordon Company, which has the 12th season of Criminal Minds, season two of Criminal Minds: Beyond Borders and Ray Donovan, renewed for a sixth season in the works.
The studio's family division saw revenue jump 64 percent to 62.1 million euro ($82 million) on strong sales of kids properties Peppa Pig and PJ Masks.