Gone long here today. System pick churned out last night. chart to follow.

http://www.investegate.co.uk/Article.aspx?id=201105310700214782H

Entertainment One Ltd.

Fisher-Price appointed as US Toy Partner for Peppa Pig

Entertainment One Ltd. (LSE: ETO), the international entertainment group, is pleased to announce that it is working with leading toy manufacturer Fisher-Price (a subsidiary of Mattel Inc) as the Company's partner in the United States for Peppa Pig to develop a comprehensive toy line based on the animated pre-school TV series.

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Entertainment One to be ahead of forecasts

StockMarketWire.com

Entertainment One expects full year earnings to be ahead of management forecasts.

The group says reported revenues for the 10 months to the end of January rose by 56%, driven by growth in both its film and television divisions, with pro forma revenues for the period up 7.5% on a constant currency basis.

Gross margins also increased, with improvements in both film and television driven by the continued increase in investment returns and cost synergies following the Alliance acquisition

Investment in content and productions was higher during the period, with a strong schedule of film releases and television programming in place for the new financial year

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Currently sitting at around 341p, up 5% this morning on the news.

eone- Final results for the year to 31 March 2015

click here

On a mission early doors.

Time for a happier chart...

Cazenove comment today:
"eOne shares have been weak in the last 12m (down c.-50%) which we believe has been driven by several factors including a) a reduced 2016 film slate, b) one-off effects that have reduced cash flow, c) the company’s £200m rights issue to gain control of Peppa Pig and d) the company’s recent £285m refinancing (at 6.875%). However, as highlighted before, we expect FY16 results (end March 16) to be the tipping point for cash conversion (JPMe 55% in FY16, vs. 38% in FY15) and remain buyers into the upcoming 9M15 trading statement (likely first week of March). With the shares now trading on c.6.5x cal. 2016E P/E, we see risk-reward as very attractive given several growth opportunities from TV production, the Mark Gordon company and rolling out the Family business (Peppa Pig and other) globally. Our 2016E/2017E adj. EPS estimates of 19.8p/20.6p are above BBG consensus at 19.6p/20.1p.
*We forecast improving FCF metrics for FY16. Rightly or wrongly eOne’s ability to generate cash remains a key focus area for investors. Given that the company is continuing its growth strategy, we expect interim production financing to continue increasing (JPMe 2016/2017/2018 £100m/£135m/£170m). However, we calculate that FY2016 results may provide an inflexion point in terms of cash generation with operating CF growing faster than investment spend (with the cash generative Family business gaining further importance in the Group context). We calculate improving FCF going forward (JPMe £75m/£97m/£112m for 2016E/2017E/2018E for adj FCF).
* Our estimates may prove too conservative. We calculate 2016E-2018E adjusted Group EBITDA CAGR of +15% with TV Production (+24%) and Family (+17%) as key growth drivers. Further upside potential comes from
the Mark Gordon business which could produce hit series (eg similar to MGC’s Grey’s Anatomy, Criminal Minds), performing materially better than we currently anticipate.
* Our 2016E/2017E EPS estimates change by -4.5%/-2.4% largely due to higher interest in 16E and marginally lower EBITDA margins in 17E."

FT and Bloomberg both reporting that ITV will make a takeover bid for Entertainment One.

Entertainment One rejects takeover bid of 236p.

ITV has scrapped its plan to buy Entertainment One (eOne), the maker of Peppa Pig, after its initial approach was rejected as undervaluing the company.

The broadcaster said it had a “clear view of the value of the business” and that it “appears this value is different to the level at which the board of eOne would currently engage in a more formal process”.

ITV proposed a takeover of eOne at 236p per share a fortnight ago as the latest stage of its plan to bulk up its production business.

Shares in eOne tumbled more than 14pc on ITV’s withdrawal, to 215p. ITV’s own shares spiked nearly 2pc.