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.