Peppa Pig owner Entertainment One has announced one-off costs of nearly £50m due to a shake-up of its film division.
The Canada-headquartered, UK-listed firm said underlying earnings before interest, taxation, depreciation and amortisation (Ebitda) will remain in line with management expectations.
The company said it expects to report around £47m of one-off costs for the year ended 31 March. More details will be revealed when EOne reports its full-year results on 23 May.
EOne said today it had renegotiated one of its larger film distribution arrangements. A one-time payment of $25m (£19.4m) will be incurred due to the termination of the previous arrangement.
In addition, the company announced further one-off costs of £27m which relate to the “accelerated reshaping” of the film division, including moving physical distribution activities towards a “digital content focused business model”. EOne said the move would “drive improved underlying profitability and cash flow”.
Chief executive Darren Throop said: “These changes are part of the reshaping of our film business for the future and are expected to have a positive impact on both cash flow and underlying Ebitda for the company.”
Peel Hunt analyst Malcolm Morgan commented: “This announcement, outside of the results process, is limited in the detail it gives.” Eone’s share price dropped 0.6 per cent after the open to 242p.