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Entertainment One

December 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ETO
  • Price:
  • 204p
Latest interims have been overshadowed by ongoing bid talks – including the possibility of a reverse takeover by the larger Zodiak Media, which is owned by Italy’s De Agostini. The results themselves were in line with adjusted pretax profit doubling to £18.8m for eps up 60% to  6.9p. Period end debt was £62m, down 23% year on year. EBITDA was up 77% to £23.6m.    On the film side, there were 74 movie releases  (vs 78) and 80 are planned for H2 including The Twilight Saga: Breaking Dawn - Part 1, which was released in November. Overall, divisional sales lifted by 5% to £106m but EBITDA soared by 40% to £16.1m driven by the Lovefilm video-on-demand tie up, which pulled in high margin digital ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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