×
You will be redirected back to your article in seconds

TV Gains Offsets Film Losses at Entertainment One

TV hits such as “Designated Survivor” and “Peppa Pig” are driving Entertainment One’s business as the company’s film division continues to struggle. Growth at The Mark Gordon Co. and the strong performance of kids’ shows “Peppa Pig” and “PJ Masks” bolstered eOne’s results, but revenue and profit declines in the independent studio’s film business weighed on the half-year numbers.

Overall revenues for the six months to end-September were down 1% year-on-year at £395.7 million ($523.7 million). EBITDA profit was up 36% at £51.4 million across the period. The pre-tax profit was £800,000 compared with a £2.5 million loss in the same six months last year.

The company has combined some of its film and TV sales, and the TV side continues to perform well, with notable deals in the period such as the sale of ABC series “Designated Survivor” to Netflix, which took international rights. It also had its first Emmy nomination, for “L.A. Burning: The Riots 25 Years Later.” TV revenues were up 17% at £168.5 million. Looking ahead, eOne told investors that combining film and TV sales will lead to increased revenue and profit in FY2018.

The Mark Gordon Co. makes “Designated Survivor” and is also developing movies including “Chronicles of Narnia: The Silver Chair.” It first completed feature, “Molly’s Game,” will be released at the end of the year, with eOne handling international distribution and STX Entertainment handling the U.S.

A smaller number of releases and reduced theatrical and home entertainment activity, however, led to a 29% slide in film revenues of £171.8 million. The company said it “will continue to reshape its film operations as it adapts to the changing marketplace.” It revised downward its full-year guidance for the total number of film releases through the year, from 200 to 180.

“Peppa Pig” and “PJ Masks” drove growth at the kids’ and family division. Toys and merchandise sales associated with those properties brought in $1.2 billion in retail sales in the half year. Overall revenue increased 64%, taking the total to £62.1 million.

Company CEO Darren Throop has set out to double the size of the business between 2015 and 2020. “The television business has 82% of the full year’s expected margin already committed or greenlit; the family business is underpinned by exceptional performance from ‘Peppa Pig’ and ‘PJ Masks’; and the film division continues to focus investment on new partnerships to reshape the business,” he said. “As such, the group remains on track to deliver full-year financial performance in line with management expectations.”

More Film

  • Jodie Foster'Money Monster' photocall, Palais, 69th

    Film News Roundup: Jodie Foster to Direct, Star in Remake of Icelandic Thriller

    In today’s film news roundup, Jodie Foster is remaking Iceland’s “Woman at War,” the Art Directors Guild honors production designers Anthony Masters and Ben Carre, “47 Meters Down: Uncaged” gets cast and Melissa Takal directs “New Year New You” for Hulu. PROJECT ANNOUNCEMENT Jodie Foster will direct, co-produce and star in an English-language remake of [...]

  • Jake Gyllenhaal

    Jake Gyllenhaal to Star in Remake of Denmark's Oscar Entry 'The Guilty' (EXCLUSIVE)

    Bold Films, and Jake Gyllenhaal and Riva Marker’s Nine Stories banner have acquired the rights to remake the Danish thriller “The Guilty,” with Gyllenhaal attached to star. The pic won the world cinema audience award at this year’s Sundance Film Festival and was also named one of the top five foreign language films of 2018 by [...]

  • Toxic Avenger

    'Toxic Avenger' Movie in the Works at Legendary

    Legendary Entertainment is developing “The Toxic Avenger” as a movie after acquiring the feature film rights. Lloyd Kaufman and Michael Herz of Troma Entertainment will serve as producers. Alex Garcia and Jay Ashenfelter will oversee for Legendary. Kaufman and Herz produced the original 1984 comedy, set in the fictional town of Tromaville, N.J., and centered [...]

  • Constance Wu

    'Crazy Rich Asians' Star Constance Wu in Negotiations for Romantic Comedy

    “Crazy Rich Asians” star Constance Wu is in talks to join Sony’s Screen Gems’ untitled romantic comedy, with Elizabeth Banks and Max Handelman producing. “GLOW” actress Kimmy Gatewood is making her feature directorial debut on the project. She will be directing from a Savion Einstein script about a woman who becomes pregnant with two babies [...]

  • Maggie Gyllenhaal AoA

    Maggie Gyllenhaal on Why a Woman Director Doesn't Automatically Make a Story More Feminine

    Having a female director doesn’t automatically make a story more feminine, says “The Kindergarten Teacher” star Maggie Gyllenhaal, but when it comes to her film with director Sara Colangelo, she says the female narrative is fully encapsulated. “Just because something is written or directed by a woman doesn’t necessarily make it a feminine articulation,” she says [...]

  • Kevin Hart Hurricane Harvey

    Academy Looks Warily at Oscar Host Options as Board Meeting Looms

    Kevin Hart’s abrupt departure as Oscars host has left the Academy of Motion Pictures Arts & Sciences scrambling to find someone to take the gig. As of now, the situation remains fluid as the group’s leadership explores options, including going host-less, individuals familiar with the situation told Variety. The Academy was blindsided by Hart’s announced departure Thursday [...]

  • Regina King Maggie Gyllenhaal

    Maggie Gyllenhaal, Regina King on Intimacy Experts: 'I Could Have Used the Help When I Was Younger'

    Maggie Gyllenhaal’s sex-trade industry series “The Deuce” features one job that’s unlike any other in television: an intimacy expert. During her Variety Actors on Actors interview with Regina King, “The Kindergarten Teacher” actress explained how the strange role is actually important in helping young actresses stand up for themselves, especially when it comes to sex scenes on [...]

More From Our Brands

Access exclusive content