Financial highlights 00:19
Family and Brands ahead of expectations 00:41
Continued growth in Television 01:44
Reshaping of Film progressing well 03:07
High quality content is the heart of what ETO do 04:05
Summary and Outlook 05:04
Having been through the intense Peppa PIg years with two young children it's no surprise the rest of the world is appreciating the brand of Peppa. So well written and a never ending supply of new fans.
Entertainment One no longer a one pig show, Credit Suisse says
(ShareCast News) - Analysts at Credit Suisse hiked their target price on shares of Entertainment One, telling clients it was no longer a one pig show, given the rapid growth of its PJ Masks franchise.
"The Family business continues to be Entertainment One's fastest growing, most profitable business. The rapid growth of PJMasks should encourage investors as it diversifies the Family business which has previously relied on one show (Peppa Pig)."
Following the film and TV producer's first half financials, the Swiss broker lifted its earnings per share forecasts for 2018 and 2019 by 5% and 11%, respectively.
In turn, that saw their target price - which was based on a discounted cash flow methodology - for the stock improve 205p to 280p.
Some of the other assumptions underlying the DCF valuation were a weighted average cost of capital of 10.4% and a terminal value of 2%, with Credit Suisse specifically stating that EPS revisions were the main driver behind the higher target price.
Potentially, there was also upside to be had from the "rebalancing" of the Film unit away from distribution and towards production, because it would allow the company to enjoy the upside from selling the shows it owns globally.
However, the broker kept its recommendation at 'neutral'.
"At our target price Entertainment One trades on 9x FY19 EV/EBITDA (excluding Entertainment One's minority interests), 5% FY19 FCF yield which we believe fairly reflects the potential risks surrounding the restructuring of the film business offset by potential takeover upside and strong growth in the Family business. Our Blue Sky valuation is 395p and our Grey Sky valuation is 160p."
Decent enough results judging by the market reaction but I've decided to top slice 50%. Been in since 2012 so nearly doubled my investment. I would have sold the lot if not for Peppa (and PJ Masks to some extent) which is undoubtedly propping up the film business and helping pay Throopy's 8 figure annual compensation.
Broker Forecast - Citigroup issues a broker note on Entertainment One Group
By StockMarketWire | Fri, 7th July 2017 - 09:30
Citigroup today initiates coverage of Entertainment One Group (LON:ETO) with a buy investment rating and price target of 295p.
Broker Forecast - RBC Capital Markets issues a broker note on Entertainment One Group
By StockMarketWire | Thu, 13th April 2017 - 12:40
RBC Capital Markets today initiates coverage of Entertainment One Group (LON:ETO) with a outperform investment rating and price target of 290p.
Peppa Pig is actually a very hot property with the potential to be the new Mickey Mouse.
It's unfortunately in the wrong hands.
The present management of ETO is incapable of seeing or realising the potential.
What is, Jane? Do you refer to Sambran's reference to Edisons note. Who will have bought it? I'm interested to know! There are no apparent ties to Edison in the list of advisors are there? Even Gretel doesn't think they're a bad company and will be prepared to reinvest. It's best to stay involved. At 12:45 as I write this the SP already appears to be on the bounce. How long before it returns to it's previous level? Of course, I may be wrong but I'm prepared to sit it out for the moment!
Gretel, I also sold about two-thirds of my holding first thing this morning.
Throop is the problem, he seems to want to be Mr Film and is
unable to see that the main asset is Peppa. Imo, it needs to be taken
over and split up, without Throop, who can then go off on his very own
ego-trip but using his own money, instead of that of investors.
Just 2.6p EPS in H1...EBITDA etc way down due to huge Film investment. They claim full year performance will be in line with "management expectations". Are these the same as market expectations? Whatever, there's a lot of catching up to do in H2 which may or may not happen.
Plus the longstanding CFO has resigned.
ETO looks good for the long-term, but there may be a long period of drift (at best) and share price falls (at worst) if the market doesn't believe the H2 catch up.
Best to protect profits etc if the story changes - which it has for the time being. Good luck all - I'll be back in (again!) if the risk/reward changes once more.
LONDON: Entertainment One (eOne) has signed the first U.K. partners for its PJ Masks licensing program.
The rollout of the U.K. merchandise program will kick off with products from Flair's Just Play division, which will distribute the brand's master global toy line, starting in February 2017. The initial range will include plush, vehicles, action figures and dress-up items.
The offering of PJ Masks U.K. merchandise will grow in fall and winter of next year as publishing and apparel items debut at mass market retail. Hachette has been appointed as the master publishing partner for the territory and is on board to produce a line of publishing formats. eOne has also inked a deal with Immediate Media for a stand-alone official PJ Masks four-weekly kids magazine. Redan will introduce PJ Masks content into its multi-brand Fun to Learn Favourites and Fun to Learn Friends magazines. The first U.K. apparel partner is Aykroyd TDP, which will launch kids' nightwear and underwear. eOne's PJ Masks licensing program in the U.K. will be aimed at boys aged 4 to 6.
Katie Rollings, the head of U.K. licensing at Entertainment One, commented, "PJ Masks is quickly establishing a solid and engaged fan base across the country with viewers being drawn to the show's heroic characters, action-packed story lines and top-class animation. We've had a tremendous response to the property and we're now delighted to be welcoming a top-tier lineup of partners to the PJ Masks U.K. licensing program who we're confident will give young fans the best possible experience of the brand."
Simon Hedge, the managing director of GP Flair, said, "We have an extensive product lineup that we believe will perfectly emulate the action and adventure that is part of every PJ Masks episode. On previewing the collection, our retailers were keen to launch as early [as] possible, hence the early spring release of the collection. To support this we are putting together a marketing strategy, targeting both boys and girls, that will ensure awareness of the toy lines at its height from the moment the toys hit the stores."
The animated preschool series about three pajama-clad superheroes launched on the 24-hour Disney Junior channel in the U.K. in February. The show consistently ranks in the channelâs top five rated series. The U.S. licensing program counts more than 40 partners. Merchandise began rolling out in North America this fall, including introductory toys from Just Play, publishing products from Simon & Schuster and apparel from Happy Threads. Merchandise is set to roll out across additional international territories starting next year."
ETO's films continue to do well. Girl On The Train is now up to an "excellent" £22m, Ken Loach's I, Daniel Blake is above £2m (which is terrific for one of his films), whilst the new Light Between Oceans is at almost S1m after its first weekend, pretty good for what is a low budget film despite its two big stars:
"The series will make its debut on October 28th on Canadian network, Treehouse.
Entertainment Ones (eOne) pre-school series Ben & Hollys Little Kingdom is set to make its debut on Canadian network, Treehouse.
Launching on October 28th at 8am, Treehouse has acquired seasons one and two of the series.
As Ben & Hollys Little Kingdom continues to gain a foothold in international territories, the confirmation of a broadcast partner in Canada further underpins its universal appeal, said Monica Candiani, head of international sales at Entertainment One Family.
Treehouse gives us the perfect platform to launch the series to Canadian families and we look forward to working with them to make the show a big success there.
eOne is now preparing to roll out its consumer products programme for the brand in Canada, with merchandise already launching in Greece, Russia and Latin America."
(Bloomberg) -- Liberty Global Plc Chairman John Malone said sterlings plunge could prompt a wave of takeovers by U.S. companies of their U.K. counterparts.
The pound has lost about 18 percent in value since Britain voted to leave the European Union and is the worst performer this year among a basket of major currencies. Last weeks slide leaves the currency down about 6 percent versus the dollar in October.
Some U.K. companies really look cheap to a U.S. dollar investor, said Malone, 75, in a phone interview. I wouldnt be surprised to see a lot of M&A activity by U.S. private equity or corporates when they think that the pound has kind of bottomed.
Malone said he and his team pay a lot of attention to the fallout from the referendum. Companies in some industries may be so affected by the possibility of a cliff-edge Brexit that they are considering reducing investments, CBI Director General Carolyn Fairbairn said last week.
As long as you are not over levered or over-committed, if things get cheap for a while thats an opportunity to increase your investment if you believe it will balance out, said Malone, who is worth $7.9 billion according to the Bloomberg Billionaires Index.
Earnings at Libertys Virgin Media cable company in the U.K. are being badly hurt right now by the weak pound, he said. On the other hand, since Virgin Media is levered and owes a bunch of pounds, in dollar terms our debt is coming down by about 25 or 30 percent.
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