Global independent studio Entertainment One’s revenue rose 35% in fiscal 2017 to the tune of US$1.4 billion. This was due to a boost in its TV and Family businesses.
Till the period ended March 31, the company’s Family business gained US$115.3 million in sales driven by the continued strong performance of Peppa Pig as well as growth from PJ Masks.
Peppa Pig continued to grow with total retail sales of US$1.2 billion (up from US$1.1 billion in 2016) and licensing and merchandising revenue of US$59.3 million, PJ Masks was a key driver of growth for the business in 2017 with revenue increasing more than 500% year-on-year from US$2.9 million to US$17.5 million.
On the whole, the eOne family generated US$1.5 billion of retail sales in full-year 2017 (a 25% year-over-year increase) and almost 800 new and renewed broadcast and licensing agreements were concluded in the year.
Looking ahead to 2018, revenue and EBITDA are expected to grow significantly for both Peppa Pig and PJ Masks but underlying EBITDA margins for Family are anticipated to decline in percentage terms. This is due to increased contribution from PJ Masks which accrues a higher level of third-party participation royalties than Peppa Pig as well as an increased investment in overhead of around US$2.6 million necessary to grow the sales platform in our various territories.