Peppa Pig owner Entertainment One (LON:ETO) was “not impacted” by speculation surrounding a takeover in its first half according to City broker Numis.
The company said on Friday it was on track to hit full year expectations after a string of new film releases – including The BFG – helped to boost box office sales by more than 50% to US$151mln.
“We are pleased to see that the abortive M&A activity over the summer has not impacted operational performance,” said Numis analyst Paul Richards.
The broker also upped its full year forecasts for the film and TV distribution firm, and now expects it to post a profit before tax of £125mln in March, previously £123mln.
Richards said this was predominantly due to favourable foreign exchange tailwinds.
eOne, which rejected a £1bln takeover offer from national broadcaster ITV PLC (LON:ITV) in August, praised growth in its family division as well.
Its Peppa Pig brand saw “stronger than expected demand” across the US, while the children’s show’s presence in China also continues to grow.
Numis was also impressed by the “strong committed film and TV slate” for the second half, which includes the highly anticipated The Girl on the Train as well as a new season of Naked and Afraid.
The broker upped its share price target for eOne to 215p because of the solid update and increased profit forecasts.
Investors lapped up the update and broker comments, with the share price adding 5% to move up to 224p.