EOne Reports 40% Boost In First Quarter Revenues

"Behind the Candelabra" and "Now You See Me" help drive revenues

“Behind the Candelabra” (Steven Soderbergh)

Entertainment One has reported a 40% revenue boost year-on-year in its first quarter, with the group’s digital revenues more than doubling, the company said in its interim management statement on Wednesday.

The company, which wrapped up its acquisition of rival Alliance Films earlier this year, now has a distribution web that encompasses Canada, the U.S., Blighty, Spain, Benelux, Australia and South Africa.

The outfit intends to release more than 250 pics during the current financial year, including “The Hunger Games: Catching Fire,” “RED 2,” “Now You See Me” and “Enders Game.”

Investment in content and programs is expected to increase to more than £250 million ($383.8 million) in the current financial year.

Reported film revenues have increased by more than 65% year-on-year, driven by 68 theatrical releases (compared to 49 in 2012). Total box office takings of $68 million repped more than three times prior year levels.

Box office releases include “Mud,” “The Place Beyond the Pines,” “Scary Movie 5,” “The Big Wedding” and “Behind the Candelabra.” DVD releases include “Django Unchained,” “The Impossible,” “Silver Linings Playbook” and “Safe Haven.”

Year-to-date television production is in line with management expectations, the company said, delivering 26 half hours in the first quarter. Its production slate for the financial year includes commissioned renewals for season two of “Saving Hope” and season three of “Hell on Wheels.”

New shows include “Klondike,” the Discovery Channel’s first scripted mini-series while “Peppa Pig” continues to perform well internationally and in the U.S. has two prime slots on Nick Jr.

The company’s operating cashflows are up year-on-year supporting the increased investment in content and programs. This is more than 85% higher in the quarter to June 30, 2013.

Net debt at June 30 was higher than the corresponding point in the prior year, primarily as a result of the Alliance acquisition.

Since eOne acquired Alliance Films, the company has exponentially increased its buying power at markets. The company virtually has a monopoly in the Canadian distribution landscape, whilst it has become a key indie player in other territories.