Peppa Pig-owner Entertainment One more than doubled pre-tax profits to £19m in the six months to the end of September, fuelled by booming digital sales of films such as Twilight and the international success of zombie TV drama The Walking Dead.
As media rights and distribution group Entertainment One fattens up for sale, it reported a 120% year-on-year increase in adjusted pre-tax profits to £18.8m in its first-half financial results, with revenue rising 1% to £204.6m.
The television and family division, which includes Peppa Pig, grew revenues by 26% year on year to £34.8m, with earnings before, interest, tax, depreciation and amortisation up 3% to £6.9m.
Entertainment One's TV business was boosted by shows including police drama Rookie Blue and strong international sales of The Walking Dead, which airs on FX in the UK, and solid pre-bookings of the TV series of John Grisham's The Firm, which launches next year.
Plans to roll-out the Peppa Pig brand to the US late next year "remain on track" – the show broadcasts daily on Nick Jr and a master toy licence is in place with Mattel-owned Fisher-Price – with Entertainment One also eyeing up opportunities in other markets.
"The business has also identified a number of leading US licensees in clothing, books, magazines and home entertainment to form the basis of an expansion of its Peppa Pig licensing programme," the company said. "Progress is also being made in rolling out the licensing programme internationally in particular in Europe, Australia and the Far East."
Entertainment One said revenues at its film division grew by 2.1% year on year to £107.4m – despite the fact the launch of one of the Twilight films massively boosted revenue last year – thanks to a surge in digital sales in the UK.
Profits at the film division almost tripled with earnings before interest, tax, depreciation and amortisation surging from £4.6m to £16.1m.
Entertainment One said this was primarily due to a lucrative five-year deal struck with online streaming service LoveFilm UK earlier this year, which has fuelled total digital revenues more than doubling to £35m to account for over 17% of group sales.
In the UK the deal helped boost a 6% year-on-year revenue increase, despite just three film releases compared to nine in the same period last year.
The only black spot was the distribution division, its home entertainment retail business in Canada and music and video distribution in the US, which saw revenue fall 11.4% year on year to £99m. Underlying ebitda fell 40% to £2.4m.
Entertainment One, which kicked off a £400m sales process in September, said an annual independent valuation of its content library showed a 40% increase to $350m (£220m).
The company said the review of its strategic options, kicked off in September, is "progressing well". It appointed JP Morgan and Credit Suisse to jointly advise on the sale process following approaches from "various parties".
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