Entertainment One eyes forecast busting full-year earnings

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LONDON (ShareCast) - - Full-year earnings expected to be ahead of company targets
- Revenue surges after strong Film and Television performance
- Improved gross margins

Film and television content company Entertainment One (LSE: ETO.L - news) logged a 56 per cent revenue increase for the 10-month period to January 31st after a strong performance in both Film and Television.

Pro forma revenues for the period climbed 7.5% on a constant currency basis. Group digital revenues continued to perform well, more than doubling against the same period in the prior year. Digital now accounts for about 20% of group revenues.

Gross margins also increased, with improvements in both Film and Television, helped by rising investment returns and cost synergies following the Alliance acquisition, it explained.

Entertainment said investment in content and productions was higher during the period, with a strong schedule of film releases and television programming in place for the new financial year. Entertainment expects to release around 270 films during the current financial year.

"The directors remain confident in the outlook for the company and expect earnings for the financial year to be ahead of management expectations," it said in a company statement.

It also expects to announce the start of a progressive dividend policy at the its year-end results announcement.

CJ (KSE: 001045.KS - news)

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