You will be redirected back to your article in seconds

eOne to Take $61 Million Hit to Profits After Movie Division Shakeup

Upcoming releases include Luc Besson's sci-fi movie 'Valerian'

International film and TV company Entertainment One said Friday that it has renegotiated a major film distribution pact as part of the reshaping of its film division. Overall the changes to the division will result in £47 million ($60.5 million) in onetime costs for the financial year ended March 31.

The company, which has partnerships in place with Mark Gordon and Steven Spielberg, said that despite the cost of the film revamp, it continued “to expect that underlying EBITDA for the financial year will be in line with management expectations.”

Entertainment One would not identify the film distribution deal that had been canceled and replaced with a new pact, but said it had involved a one-time payment by the company of $25 million. It added: “Management expects underlying profitability and cash flow to improve for films delivered under the new distribution arrangement.”

In addition, other one-off costs related to the film division “reshaping” have amounted to £27 million ($34.7 million), including the shift of its “physical distribution activities towards a digital-content-focused business model.” It said the changes are expected to improve profitability and cash flow.

Darren Throop, eOne’s CEO, said: “These changes are part of the reshaping of our film business for the future and are expected to have a positive impact on both cash flow and underlying EBITDA for the company.”

Entertainment One, which will announce its annual results May 23, reported £802.7 million ($1.03 billion) in revenue and £47.9 million ($61.6 million) in pre-tax profit in its previous financial year.

It has film distribution operations in Canada, Spain, the U.K., Australia, New Zealand and Benelux, which release around 200 films a year. Upcoming releases include Luc Besson’s sci-fi movie “Valerian” and Kathryn Bigelow’s riot drama “Detroit.”

More Biz

  • Tokyo Film Festival and Market Choose

    Tokyo Film Festival and Market Set Separate Dates in 2019

    The Tokyo International Film Festival and its accompanying rights market, TIFFCOM, will be held on separate dates this year. Some film executives may have to choose to attend one or the other. The film festival Wednesday announced that it will be held from Monday, Oct 28 to Tues, Nov. 5. Previously, the TIFFCOM market said [...]

  • Jeremy Vuernick

    Capitol Music Group Promotes Jeremy Vuernick to Executive VP of A&R

    Jeremy Vuernick has been promoted to Executive Vice President of A&R for Capitol Music Group, it was announced today by CMG COO Michelle Jubelirer and president Ashley Newton. In his elevated position, Vuernick will draw upon his broad experience as an A&R executive to sign and develop artists for the company, as well as oversee recording projects for new and [...]

  • Darnell Strom

    Darnell Strom to Lead UTA's Newly Created Culture and Leadership Division

    Darnell Strom has joined UTA and is set to lead its newly created Culture and Leadership division. Strom will represent and work with existing and new UTA clients who want to expand their diverse businesses and cultural influence at the intersection of entertainment, media, entrepreneurship, politics, the arts, and thought leadership. Strom brings years of [...]


    British Lawmakers Reject Prime Minister's Brexit Plan, Heightening Uncertainty

    British lawmakers have resoundingly rejected Prime Minister Theresa May’s terms for the U.K.’s withdrawal from the European Union, heightening the country’s sense of uncertainty and paralysis less than two months before the exit is supposed to take effect. Parliament rejected May’s Brexit plan by a 432-202-vote Tuesday evening, one of the biggest parliamentary defeats in [...]

  • Dan Cohen nonesuch records

    Nonesuch Promotes Dan Cohen to Senior VP of Marketing

    Dan Cohen has been named Nonesuch Records’ senior vice president of marketing, the company announced today. In his new role, Cohen oversees marketing, sales, publicity, new media, and content creation for the long-running Warner Music Group label. Cohen reports to Nonesuch President David Bither and is based at the label’s headquarters in New York. Cohen [...]

  • hollywood debt

    Can Hollywood's Biggest Media Companies Avoid Getting Crushed by Debt?

    Randall Stephenson, AT&T’s chairman-CEO, summoned all of his folksy Oklahoma earnestness as he made an enthusiastic pitch to Wall Street analysts about the telephone company’s bold efforts to transform itself into a multimedia powerhouse. It was late November, less than six months after AT&T had wrapped up its $85 billion acquisition of Time Warner. But [...]

More From Our Brands

Access exclusive content