The movie and TV distributor and production company behind the Hunger Games is counting on the latest instalment of the teenage drama franchise to reverse a 38% decline in revenues at its film division.
Entertainment One chief executive Darren Throop said the company had suffered as part of an industry-wide weakness at the cinema box office in the half year to September.
“The entire industry has stagnated,” said Throop. “I’m not sure if it was the World Cup or not the same quality of films as seen last year.”
But he said revenues were now bouncing back, with Mr Turner, Nativity 3 and the forthcoming Hunger Games film Mockingjay - Part 1, due out this weekend.
EOne enjoyed strong growth at its TV arm which Throop described as experiencing a “golden age” thanks to higher investment and better quality shows.
Kids’ show Peppa Pig is also generating strong merchandising sales.
He has ambitious plans to double the size of the company over the next five years, with more acquisitions on the agenda and is talking to lenders about increasing its debt facilities.
Throop maintained EOne could afford to take on more lending as its ratio of net debt to ebitda profits — a key measure — was only around one. “We don’t have much debt,” he said of its £180 million net debt.
He added the wider film market looks ripe for consolidation and that EOne was in a strong position as one of the biggest independent studios outside the “Big Six”.
Throop said: “There needs to be consolidation in Hollywood, as it has already in the rest of the media industry, but we haven’t seen it yet. We’re the biggest small player and we see a lot of opportunities.”
Pre-tax profits doubled to £2.4 million. Revenues fell 4% to £338.2 million on an underlying basis. Overall the film arm was down 15% and the smaller division TV was up 32%.
