Peppa Pig maker Entertainment One widens losses ahead of £3.3bn sale to Hasbro
The London-listed firm slid to a £43.9 million loss for the three months to June 30.
Peppa Pig owner Entertainment One (eOne) has reported widening losses ahead of the completion of its £3.3 billion sale to toy giant Hasbro.
The London-listed firm slid to a £43.9 million loss for the three months to June 30, down from a £6.8 million loss the previous year, after it was struck by a £28 million one-off payment.
EOne updated investors ahead of its annual general meeting next week, where shareholders will vote on the agreement to sell the business to Hasbro.
Hasbro, the maker of Monopoly and My Little Pony, said that the move would “dramatically enhance” its story-telling capabilities. The deal is still awaiting regulatory approval.
The media business also posted lower sales, sliding 7% to £173.1 million, driven by a decline in film, television and music revenues.
Sales were affected by fewer scripted programmes, the company said, although this was partly offset by an increase in music revenue through the acquisition of Audio Network for £178 million in April.
It said eOne suffered a “lower performance” in film and television revenues as it was impacted by the mix and timing of releases.
However, the company said the scripted television market remains vibrant and said it saw a number of new series commissioned.
It also hailed the strong performance Keanu Reeves-led action movie John Wick 3 to boost its film revenues as it focuses on increasing production.
EOne said revenue across its key family and brands division was “broadly stable compared to the prior period”, despite a competitive preschool merchandise market.
Peppa Pig has “maintained momentum” in its core markets, while PJ Masks, another of the company’s shows for younger children, has been fully rolled out across the major global markets, with particular success in the US and Canada.