Family division performing ahead of expectations for six months ending September 30 2017.
eOne has reported strong growth for its Family division – ahead of expectations – for the six months ending September 30, 2017.
Family generated US$1.2 billion of retail sales in the period, an increase of 71%, driven by the successful retail rollout of PJ Masks and continued growth of Peppa Pig.
Revenue for the period was up 64% to £62.1 million (2016: £37.9 million).
More than 550 new and renewed broadcast and licensing agreements were concluded in the period, which was an increase of more than 70% period-on-period. At September 30 2017, the business had over 1,300 live licensing and merchandising contracts across its portfolio of brands (March 31 2017: almost 1,100).
Peppa Pig continued to grow period-on-period with revenue of £37.4 million (2016: £31.7 million). The growth was driven by China where licensing and merchandising revenue increased by over 700% period-on-period.
In the US the brand remained a top rated show on Nick Jr. for children between 2-5, while the licensing programme continues to build, supported by the significant investment and recruitment in Peppa Pig’s brand management infrastructure.
In the UK, the brand benefitted from the release of Peppa Pig: My First Cinema Experience, which generated box office revenue of £3.6 million in the territory (as well as A$2.2 million in Australia and New Zealand) and consolidated its position as an ‘evergreen’ brand in the market.
Meanwhile, PJ Masks has been a key driver of revenue growth for the business in the period, with revenue increasing over 600% period-on-period from £3.0 million to £22.3 million.
Following the successful US roll out, the licensing programme continues to expand to the UK to positive results where it has contributed to more than 15% of the total licensing revenue for the period. Building on this momentum, agents are being signed across Europe, Australia and Asia.
Following the success of the first season of PJ Masks, a second season (52 episodes) is currently in production with new episodes expected to launch early calendar year 2018. Season three is expected to be greenlit in the second half of the financial year.
In addition, a licensing programme for Ben & Holly’s Little Kingdom was launched in the US in August across toys, apparel and publishing in Target stores nationwide.
The results also revealed that eOne is in production on a number of other properties. These include Ricky Zoom, a preschool vehicle-based series from the same creative team as PJ Masks; and comedy series Cupcake & Dino: General Services.
Going forward, eOne is expecting Peppa Pig’s China business to grow from 20 licensing agreements in FY17 to 60 by the end of FY18.
PJ Masks will build upon the success of the US licensing programme and continue to roll out across Europe and Asia, combined with a stage show which opened in the US in October 2017. The brand is generating significant interest in China and a full launch is planned for next financial year.
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