Entertainment One blames box office plunge on warm summer Entertainment One, the film and television distributor, blamed a warm summer, the World Cup and a weak slate of cinema releases across the industry for a 42pc plunge in its box office turnover in the first half of the year. The company reported theatrical revenues of £32.8m, down from £56.8m a year ago. The combination of negative also factors drove down sales in its home entertainment and broadcast divisions, which exploit its films - such as the current release Mr Turner - after they have appeared in cinemas. It meant eOne's total turnover was down 10pc in the first half, at £366.1m. Profit before tax doubled to £2.4m, however, and the company's margin on earnings before interest, taxes, depreciation and amortisation increased by 3.2 percentage points to 11pc. Giles Willits, the FTSE 250 company's chief financial officer, brushed off the weak sales as he announced eOne will embark on a major expansion plan to double in size in five years. It has appointed JP Morgan and Goldman Sachs to explore its option for new borrowing to fund a probable acquisition spree and investment in organic growth. Mr Willits said a stronger release schedule across the industry in the second half of the year meant "people are starting to get back into the habit of going." A lot of the sequels and prequels earlier in the year were not engaging with audiences the way they have in the past. The new debt will increase eOne's gearing from its current debt to equity ratio of one times and is likely to include a bond placing and a new revolving credit facility. Mr Willits said the company would seek agreements with banks as soon as possible. The plan was a vote of confidence by eOne in the value of film and television rights in the future, Mr Willits added. As well as releasing films to cinemas, the company funds television production, including the children's favourite Peppa Pig. It sells its rights for distribution to homes by broadcasters and via a growing array of on-demand services. Mr Willits said eOne was receiving a growing number of enquiries from pay-TV providers seeking to buy up exclusive rights to content at a premium. The company boosted the book value of its content library by more than 20pc partly as a result.