Entertainment One Ltd. Announces Interim Results for the six months ended 30 September 2008
03 December 2008
Strategic Highlights
- Successfully building scale in the Filmed Entertainment businesses
- Completed the acquisition of Barna-Alper, Blueprint, Oasis and Maximum, to expand the Group's activities in the Canadian market
- Secured a new four-year multi-currency US$150 million credit facility led by JP Morgan
- Financial Highlights(1)
Financial Highlights(1)
- Revenue up 18.4% to US$253.2 million (2007/08: US$213.9 million)
- Underlying EBITDA of US$13.1 million (2007/08: US$11.2 million) up 17.0%
TORONTO, Dec. 3 /CNW/ - Entertainment One Ltd. ('E1') (LSE: ETO), a leading international independent entertainment content owner and distributor, today announces its results for the six months ended 30 September 2008. Reported revenues were up 18% to US$253.2 million (2007/08: US$213.9 million) driven mainly by a full six months contribution from the acquisitions of Contender, Seville and RCV which were completed during the 2007/08 financial year. Operating EBITDA was up 17 per cent at US$13.1 million.
Darren Throop, Chief Executive said "We have continued successfully to execute our strategy in the first half of the financial year. We are pleased to welcome the team from Blueprint, Barna-Alper, Oasis and Maximum into the Group. The addition of these Canadian television production businesses provides another step forward in delivering the Group's strategy. Completing the new senior credit facility with JP Morgan has secured the necessary financing for the Group to support our growth plans for the next four years. The overall performance of the Group was in line with our expectations and reflects our growth in Filmed Entertainment. Looking forward, while macro economic uncertainty is high we remain confident in the business to perform well."
Strategic Highlights
On 24 September 2008 the Group acquired four Canadian television production and distribution businesses. These acquisitions included Barna-Alper Productions Inc. and Blueprint Entertainment Corp., both established independent television production companies in Canada and Oasis Pictures Inc., a film and television international sales and distribution company. The acquisitions have established Entertainment One as a significant television producer and distributor in the Canadian market and provide the Group with an international sales infrastructure which the directors believe will enable the company to license its filmed content more effectively around the world. These businesses diversify the revenue base into a unique industry, which enjoys a favourable financing environment, and are able to create content with a favourable risk-return profile for delivery into the Group's multi-territory film distribution infrastructure. The acquisition also included Maximum, a Canadian film distribution business, which will be combined into the operations of the Group's existing Canadian film distribution business, Seville, and provides the Group with a stronger platform to continue growth in the Canadian market.
On 17 September 2008 the Group announced a new four-year multi-currency US$150 million senior credit facility led by JP Morgan. This replaced the Group's existing debt facilities and provides additional capital to the Group for continued growth alongside greater flexibility and certainty of funding for the foreseeable future. Along with JP Morgan, participating banks include Bank of America, Barclays, Toronto Dominion Bank, Royal Bank of Canada and Alliance & Leicester. As part of the financing, the Group commissioned an independent third party report that has valued the film and music library, which currently includes over 3,700 film titles and approximately 15,000 music tracks, in excess of US$175 million.
On 29 September 2008 the Group announced that it had entered into a conditional agreement to combine its operations with those of DHX Media Ltd ("DHX"). The combination will be structured as a reverse takeover of Entertainment One by DHX. On completion the enlarged Group will have a primary listing on the Toronto Stock Exchange and a secondary listing on AIM.
(1) Rates used:
30 September 2008 cumulative average for the period 1 April 2008
to 30 September 2008: 1.9315
30 September 2007 cumulative average for the period 1 April 2007 to
30 September 2007: 2.0044
The interim results for the six months ended 30 September 2008 reflect the progress that has been made in executing the Group's strategy to own and exploit entertainment rights across the spectrum of distribution channels (including movie theatres, home entertainment, television and digital delivery platforms) on a multi-territory basis and to expand its operations through both organic growth and the acquisition of established content ownership and exploitation businesses in key international markets. The strategic goal of the Group is to become the world's leading independent content ownership and distribution business.
Notes to Editors:
Entertainment One Ltd. (LSE: ETO) is a leading independent entertainment company with operations in the United States, the UK, Canada, Holland and Belgium. The company's strategy is to become the world's largest owner and distributor of independent film, television and music content through acquisitions and organic growth.
For further information:
Shane Dolgin,
Edelman for Entertainment One,
(416) 979-1120 x328,
shane.dolgin@edelman.com