Spotlight distributor Entertainment One hit by film slump

The distributor behind Spotlight — the film which won Best Picture at the Academy Awards last Sunday — is suffering a post-Oscars hangover today, as investors sent the group spiralling.

Entertainment One’s shares fell by almost 9% to 158p as revenues slid 3% in the nine months to the end of December.

A strong TV performance, up 39%, was offset by a 14% slump in film revenues but the business insisted it was on track to double in size by 2020.

“Though the film division continues to experience trading challenges, its restructuring and the exciting committed film release slate for the next financial year provide a positive outlook for film,” boss Darren Throop said.

Spotlight aside, E One had a disappointing year in film largely because most box-office hits came from major studios, rather than the smaller businesses it distributes.

Total box office takings of $174 million (£125 million) was considerably lower than $228 million a year earlier.

It is anticipating a stronger 2017 slate of releases, when it has the rights to distribute the much-anticipated film of hit British novel The Girl on The Train.