In anticipation of Hasbro’s US$4 billion acquisition of Entertainment One closing in Q4, subject to approval by shareholders, eOne is reporting that Q1 2019 revenue is down 7% to US$219.4 million.
The decline was attributed to eOne’s film, television and music business due to lower broadcast and licensing revenues. Revenue for the sector declined 7% to US$181.8 million. Looking forward, eOne is co-financing kids films Clifford The Big Red Dog and Monster Problems with Paramount Pictures. The movies will be distributed in Canada and the UK by eOne, while Paramount will handle distribution in the US and globally.
eOne’s family and brands business reported US$38.6 million in revenue (compared to US$39.2 million in Q1 2018), with the slight decline attributed to an increase in infrastructure to support brand longevity and ongoing growth. Peppa Pig (pictured) celebrated its 15th anniversary earlier this year, and eOne reports the preschool property is on track to deliver 117 new episodes to air by 2023.
The company’s full-year revenue for fiscal 2018 fell 9% to US$1.19 billion, as continued growth in its family and brands business was offset by reduced revenue on the film side. eOne’s family and brands revenue increased 28% to US$202 million during the period, driven by strong performances from Peppa Pig and PJ Masks.
Hasbro’s acquisition will see the toymaker take ownership of eOne’s entire film and TV production slate, and the company plans to move a significant portion of eOne’s toy business in-house. An independent valuation found eOne’s library assets are worth US$2.1 billion as of March 31 (an increase from US$2 billion in 2018).