Entertainment One sees first-half pre-tax profit fall

Revenues were up in film and TV production and distribution, but higher printing and advertising costs for film releases and one-time items dented the bottom line.
November 12, 2012

The timing of deliveries and one-time items led Entertainment One on Monday (November 12) to post lower first-half pre-tax earnings as increased investment in film and TV content drove revenues up.

Releasing its interim results in the UK, Toronto-based eOne saw pre-tax profits fall to CAD$1.58 million for the six months to September 30, against pre-tax earnings of $15.58 million in the prior year period. Overall revenue rose to $350.3 million, against $325.2 million in the same period of 2011.

eOne delivered 138 half hours of TV programming, up 89% from year-earlier levels, including TV titles like Haven and Saving Hope.

And the indie distributor, which expects to close its takeover deal for Alliance Films in early 2013, released 89 theatrical releases during the first half, against 74 films in 2011.

The pre-tax profit fall was blamed on one-time items like share-based payment charges and amortization of acquired intangible assets, among other unusual items. And eOne pointed to the timing of increased investment, which drove up printing and advertising costs by 30% in the first half of the latest fiscal year.

Elsewhere, the distribution business posted lower revenues on fewer DVD sales. The second half of the year for eOne “remains positive,” the company said.

“The directors look forward to delivering year-on-year profit growth in line with management’s expectations,” eOne added in a statement accompanying its latest results.

About The Author
Daniele Alcinii is a news reporter at realscreen, the leading international publisher of non-fiction film and television industry news and content. He joins the rs team with journalism experience following a stint out west with Sun Media in Edmonton's Capital Region, and communications work in Melbourne, Australia and Toronto. You can follow him on Twitter at @danielealcinii.