9th Feb 2009 07:00
9th February 2009
Entertainment One Ltd.
Entertainment One provides trading update and announces Board to conduct review of options for the Company
Overall trading performance in line with management expectations
Strong filmed-content driven trading over the holiday period with Twilight topping both Canadian and UK box-offices
Strong pipeline of movies and TV programs for release in 2009
US music business restructured in challenging market
Board to delay plans for TSX listing pending review of options for the Company
Entertainment One Ltd. (the "Company") continues to perform in line with management expectations following a solid holiday trading period.
During November and December, the Company released the film Twilight in Canada and the UK, the first major release as part of the output agreement with US independent studio Summit Entertainment. The film reached number one in the box office charts on its opening weekend. The film businesses in the UK, Canada and the Benelux remain well positioned going into 2009, with a strong schedule of releases in the coming year.
The Company's Canadian distribution business had a robust holiday trading period. However, conditions in the US music market remain challenging. In response, management has undertaken a restructuring of the Company's US operations to ensure its music business remains competitive and profitable going forward. This will result in a one-off (primarily non-cash) charge to the income statement at the financial year end.
Overall the outlook for the full year to 31 March 2009 remains within the range of market estimates.
Following the recent performance of the Company's share price, and after consultation with key shareholders, the Board has decided to delay the planned listing on the TSX and to undertake a review of the Company to assess options for maximising shareholder value. The Company will report on the results of this review in due course.
James Corsellis, Non-Executive Director of Entertainment One and Managing Partner of Marwyn Investment Management LLP said:
"We are confident that the Board's strategy will deliver substantial value and Marwyn remain committed to the long term future of the Company. Entertainment One is in a strong position. With its recently completed refinancing and performance the long term prospects remain good."
Darren Throop, Chief Executive of Entertainment One, said:
"The core businesses of the group continue to perform well despite the tough economic climate. The company's film distribution operations are well-positioned going into 2009, with a strong pipeline of movies and television programming for release over the coming months"."
Having completed a series of strategic acquisitions that have significantly grown and diversified the company's activities and international reach, the company has integrated all its operations into four main units under a new brand name, E1 Entertainment. The four units are: E1 Films, E1 Television, E1 Music and E1 Distribution. These businesses cover E1's international operations in filmed content distribution, television and music production and content distribution and its North American physical distribution division.
Enquiries:
|
Quiller Consultants |
John Eisenhammer |
+44 (0) 20 7233 9444 |
|
Edelman |
Shane Dolgin |
+1 416 979 1120 |
|
Entertainment One Ltd. |
Giles Willits |
+44 (0) 20 7004 2755 |
|
Singer Capital Markets Limited (NOMAD to Entertainment One) |
James Maxwell |
+44 (0) 20 3205 7500 |
Notes to Editors:
Entertainment One Ltd. (AIM: ETO) is a leading independent entertainment content owner that acquires film, television and music rights and exploits these rights in all media in more than 190 countries. The company currently operates in Canada, the U.S., the UK, Holland and Belgium through its four primary businesses units: E1 Television, E1 Films, E1 Music and E1 Distribution. These businesses collectively represent E1's extensive expertise in film distribution, television and music production/distribution, Kids content, Licensing and Distribution. E1's content library includes more than 3,700 feature films, 2,700 hours of original television programming and 15,000 music tracks.
www.entertainmentonegroup.com
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Entertainment One