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Entertainment One - Strong performance from TV side

March 2015

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:
  • 300.5p
eOne has said it expects full year results to come in ahead of market expectations. JP Morgan Cazenove has responded by lifting its eps forecast by 6% to 23.2p for the year to end March, although the forecast for the current year is left alone at 25.1p.Films dominate the business following the acquisition of Alliance a couple of years ago but this division wasn’t behind the positive surprise. Films actually went backwards (14% lower year on year) due to fewer releases (191 versus 220) resulting in lower box office receipts (US$225m versus US$380m). The film slate for 2016 is, however,  much stronger.The swing factor has been the TV side with sales up 36% driven by increased production volumes  (on track for 550 half hours for ...

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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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