Peppa Pig owner Entertainment One sees profits plunge by 80%

Peppa Pig owner Entertainment One (Other OTC: ENTMF - news) has posted an 80% fall in first half profits as it counts the cost of investment in films and reviews the value of businesses bought in a recent takeover spree.

Shares (Berlin: DI6.BE - news) in the London-listed Canadian firm fell 11% as it also announced the departure of finance director Giles Willits.

The stock ended the day almost 13% lower.

Pre-tax profits for the six months to the end of September fell to £3.7m compared to £18.1m in the same period last year.

The results come months after Entertainment One fought off a £1bn takeover offer from broadcaster ITV (Frankfurt: A0BLQP - news) claiming it undervalued the business.

Latest results showed revenues climbing 19% to £401m for the half-year, including growth for its family division which includes popular children's TV character Peppa Pig.

The group pointed to strong growth for Peppa Pig products in the US and China.

Earnings in its film division were down thanks to increased investment but this is expected to bear fruit in the current period with the release of titles such as The Girl on the Train and Arrival.

Group profits took a hit from a £20.7m "amortisation" - an accounting term relating to decreased value - largely relating to assets it had bought during a series of takeovers in the year to the end of March.

That included Peppa Pig creator Astley Baker Davies.

Chief (Taiwan OTC: 3345.TWO - news) executive Darren Throop said the group "remains on track to deliver full year financial performance in line with management expectations".

He said the period ahead was "exciting" and "underpinned by exceptional performance from Peppa Pig".

The company said finance director Mr Willits was leaving after nine years "to take some time off and then look to develop the next stage of his career".