Entertainment One shares surge after it denies top boss exit reports
Shares spiked 16% in early trading after the Peppa Pig maker reassured investors that Mark Gordon will remain at the firm.
Entertainment One shares have surged after the Peppa Pig maker denied reports that its president is set to leave the firm.
Shares spiked 16% in early trading after the TV and film production business reassured investors that Mark Gordon, president and chief content officer, will remain at the firm.
The company told investors in a short statement: “In response to recent press speculation, Entertainment One can confirm that Mark Gordon continues to be a part of the Entertainment One team both now and into the future.”
It followed an article by US publication Variety which said that Mr Gordon was in talks to exit the business on the back of “conflict” between himself and senior managers at the British-Canadian company.
Shares slid at the end of trading on Wednesday after the report was released but the stock made back its losses upon the public denial.
The report claimed that the business was “pushing Gordon out” because “it became clear that he was ill-suited to the role of managing a large organisation”.
Mr Gordon was promoted to president and chief content officer after Entertainment One completed its acquisition of his production business, The Mark Gordon Company, in January 2018.
Pre-tax profits for the company slid 43% to £36.8 million for the year to March 2019, as it was weighed down by a £68 million impairment charge in its film distribution business.
The firm was buoyed by a strong performance in its family and brands division, which also includes children’s cartoon PJ Masks, but saw revenues dive 9.1% to £941 million following declines in its film, television and music division.