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Peppa propels eOne again

eOne owns popular children's brand Peppa Pig

eOne owns popular children’s brand Peppa Pig

Transatlantic producer and distributor Entertainment One (eOne)’s annual results have been buoyed by Peppa Pig and its TV interests despite continued losses at its film division.

eOne upped its stake in the children’s show’s producer, Astley Baker Davies (ABD), to 70% last year and its family division saw revenues up 10% to £67m (US$97m), with EBITDA up 82% to £43m.

The £140m (US$212m) deal saw ABD become a subsidiary of eOne, with the Canadian firm increasing its share of earnings from Peppa Pig from 50% to 85% and ABD holding the remaining 15% interest.

eOne said other kids’ shows such as PJ Masks were also proving popular and added that it had acquired or produced 998 half-hours of new programming this year, up from 752 this time in 2015.

The firm also said The Mark Gordon Company, acquired in January 2015, has almost 60 projects in development, with overall TV revenues up 27% to £188m.

However, its movie division again dragged down results, with revenues 7% lower at £533m, totalling 210 releases compared with 227 last year.

In December details of eOne’s debt-refinancing plans and market concerns over the profitability of its movie business led to its value plummeting by around £300m (US$450m) over several days.

Rumours of a takeover by UK broadcaster ITV emerged, which were later brushed off by eOne, and while its share price has partly rebounded, it still lies around 44% below its 12-month high.

The firm has been pursuing a strategy to double in size since 2014, something eOne said today it was on course to achieve, and has bought a number of firms over recent years aside from ABD.

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In February it shelled out US$23m for a controlling stake in US reality prodco Renegade 83, which joined Paperny Entertainment and Force Four Entertainment.

However, the Peppa Pig agreement, funded by a £193.6m rights issue, was followed by a £285m refinancing deal that cost more than some analysts had expected, leading to growth predictions for the firm being slashed.

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