Entertainment One: On Course To Double EBITDA By 2020
Edison | May 22, 2018 03:07AM ET
Entertainment One Ltd (LON:ETO):
An excellent performance from Family and Brands and strong growth in Television offset declines in Film to deliver EBITDA growth of 11%, which is in line with forecasts. The group is in good shape entering FY19 and is on track to deliver to its five-year plan to double EBITDA by 2020. The shares are on a c 40% P/E and c 20% EV/EBITDA discount to global peers and we believe they offer good value.
Family & Television growth outweighs Film declines
Revenues declined 4% in FY18, although with the mix of growth continuing to come from the higher-margin Family and Brands and Television divisions, overall EBITDA growth of 11% was in line with forecasts, as was adjusted EPS of 21.9p. A near tripling of revenues from PJ Masks and strong growth from Peppa Pig underpinned a 56% increase in Family revenues. A solid slate of drama, increased deliveries for Designated Survivor and the full-year impact of the Renegade acquisition supported 19% growth from Television. This was offset by a 32% decline in Film, which delivered the targeted £10m of costs savings but released fewer titles.
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