Shares in Peppa Pig owner down after revealing it will take £47m hit to profits
Peppa Pig owner Entertainment One has revealed that it will take a £47 million hit to profits as part of a restructuring programme.
The firm said a £27 million one-off cost will come as a result of the reshaping of its film division, which includes transitioning its physical distribution activities towards a "digital content focused business model".
Entertainment One will also book a £20 million charge from renegotiating a new distribution arrangement.
Shares in Entertainment One slipped almost 1% to 242p in morning trading as investors digested the news.
Neil Wilson, senior market analyst at ETX Capital, said: "Entertainment One shares dipped on the open after the company warned on profits.
"The maker of Peppa Pig is trying to rely less on the porcine kids show and develop its film division. This ought to be good for underlying earnings and cash flow going forward, but for the time being it's going to cost."
In March, Entertainment One reported strong annual revenue growth as it raked in 200 million US dollars worth (£161 million) of Peppa Pig product sales.
It said US retailers had bolstered their product ranges after 65 Peppa Pig retail licences were rolled out across America just before Christmas.
The company has also been the subject of takeover approaches, and last year ITV abandoned a £1 billion pursuit of the firm after its initial offer was snubbed.