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Tag: Eros International Media Limited

  • Eros back in the frame with Q3 profit of Rs 114 crore after losses

    Eros back in the frame with Q3 profit of Rs 114 crore after losses

    MUMBAI: Bollywood’s box office may be unpredictable, but Eros International Media Limited has delivered a plot twist of its own swinging back into profit in the third quarter of FY24 after a string of red numbers.

    The company’s consolidated results for the quarter ended 31 December 2024 show a net profit of Rs 114.4 crore, compared to a steep loss of Rs 528 crore in the same quarter last year. Even more telling, this turnaround follows a loss of Rs 117 crore just in the September quarter. For the nine months ended December 2024, Eros clocked Rs 1,376 crore in profit, a remarkable bounce from the Rs 1,298 crore loss recorded in the same period of FY23.

    Revenues, however, told a more modest story. Income from operations in Q3 stood at Rs 13.08 crore, down from Rs 31.57 crore a year ago. Total income came in at Rs 38.65 crore, versus Rs 254.55 crore in the previous nine-month period, suggesting the focus was less on topline growth and more on aggressive cost management.

    That cost discipline was evident in the expense sheet. Operational costs, including content amortisation, were Rs 19.76 crore, down from Rs 81.51 crore last year. Other expenses were pruned to Rs 2.82 crore in the quarter, compared to a hefty Rs 477 crore in the year-ago period. Finance costs and employee expenses also dipped, helping Eros reverse the narrative.

    Earnings per share (EPS) reflected the turnaround too, with basic EPS at Rs 11.9 for Q3 compared to a negative Rs 42.9 for FY24. Total comprehensive income for the quarter stood at Rs 370 crore, again a sharp rebound from the Rs 409 crore loss in Q3FY23.

    The board, which met on 3 September, also approved an application to extend the deadline for its annual general meeting (AGM) for FY25, even as it cleared the unaudited results reviewed by Haribhakti & Co. LLP.

    For investors, the Eros saga now reads like a redemption arc from a cliffhanger of mounting losses to a surprise happy ending in Q3. The real question is whether this revival is a one-off cameo or the start of a sustained sequel.
     

  • Eros Now partly assuages Eros International’s syndication declines

    Eros Now partly assuages Eros International’s syndication declines

    BENGALURU: Eros International Plc (Eros) reported 49.1 percent decline in aggregate revenue to $23.1 million for the quarter ended 30 September 2019 (Q2 2019, quarter or period under review) as compared to the corresponding year ago quarter’s $63.4 revenue. Eros explains that lower revenue was mainly due to lower syndication revenue for Q2 2020, which was partially offset by increase in revenues from the Eros Now business. “Our Eros Now business continues to ramp up and grow its paid user base worldwide, supported by one of the largest libraries of Indian movies, along with its unparalleled market position and brand name,” says a statement by Eros.

    In Q2 2020, the Eros film slate comprised 11 films of which 11 were low budget as compared to 17 films in Q2 2019, of which four were medium budget and 13 were low budget. In Q2 2020, the company’s slate of 11 films comprised two Hindi films and nine regional films as compared to the same period last year where its slate of 17 films comprised five Hindi films and 11 regional films and one Tamil/Telugu regional film.

    Operating adjusted EBITDA declined to less than a third (declined by 2.53 times)  y-o-y to $7.8 million in Q2 2020 as compared to $27.5 million in Q2 2019. Eros claims that the decrease in Adjusted EBITDA was on account of increase in administrative costs due to expected credit loss expense accounted as per default method under IFRS 9.

    Gross profit for the period under review declined 38.7 percent y-o-y to $15.5 million from $25.3 million in Q2 2019. Eros reveals that the decrease was mainly due to lower amortisation, marketing, advertising and distribution costs for Q2 2020 which was partially offset by increase in administrative cost.

    The company reported a lower operating loss of $13.6 million for Q2 2020 as compared to an operating loss of $261.9 million in the year ago quarter.

    The company says that cost of sales decreased by 55.6 percent to $16.9 million in Q2 2020 compared to $38.1 million in Q2 2019. Eros says that the decrease was mainly due to lower amortisation costs. Administrative cost increased by 72.2 percent in Q2 2020 to $29.1 million compared to $ 16.9 million in Q2 2019. The increase was mainly due to increase in expected credit loss accounted as per default method under IFRS 9.

    For Q2 2020, Eros’s net finance costs increased by 866.7 percent to $2.3 million, compared to $(0.3) million in Q2 2019 mainly due to increase in finance costs and reduction in interest income on account of unwinding of credit impairment loss.

    Eros says that as of 30 September 2019, Trade Receivables decreased to $189.8 million from $196.4 million as of March 31, 2019 after considering expected credit loss reserve upon adoption of new accounting standards during the period.

    Company speak

    Excerpts of a statement made by the company:

    “This quarter we generated $32.3 million of top-line revenue and $7.8 million in adjusted EBITDA. Our Eros Now business continues to ramp up and grow its paid user base worldwide, supported by one of the largest libraries of Indian movies, along with its unparalleled market position and brand name. As of 30 September 2019 our Eros Now OTT platform reached 23.5 million paid monthly subscribers and 177.7 million registered users, increases of 81percent and 39 percent, respectively, over the same period last year. This represents net additions of 4.7 million paid subscribers and 23 million registered users during the first half of Fiscal Year 2020. Eros Now currently garners viewership from over 150 countries around the world. Eros has a strong slate of films and original series scheduled for release over the coming quarters, and we expect this to help drive continued growth in our Eros Now business as well as box-office revenue.

    “For the full fiscal year 2020, we are reiterating our consolidated revenue guidance in the range of $200-220 million, and Adjusted EBITDA of $80-$95 million. We have a healthy balance sheet with net debt of $112.6 million and $99.4 million of cash and cash equivalents.”

  • Eros International reports lower numbers for Q1 2019

    Eros International reports lower numbers for Q1 2019

    BENGALURU: Indian film and media company Eros International Media Ltd (Eros) reported a 15.9 percent decline in consolidated net sales/income from operations (Op Rev) for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the corresponding year ago quarter Q1 2019 (y-o-y). Eros reported consolidated Op Rev of Rs 183.52 crore and Rs 217.93 for Q1 2020 and Q1 2019 respectively. The company’s consolidated simple operating EBITDA fell 64.7 percent to Rs 32.91 crore (17.9 percent of Op Rev) in Q1 2020 from Rs 93.33 crore (42.8 percent of Op Rev) in Q1 2019. Consolidated Profit after tax (PAT) during the quarter under review declined 54.9 percent y-o-y to Rs 27.05 crore from Rs 59.95 crore. Total comprehensive income or TCI declined 77.9 percent y-o-y to Rs 22.3 crore from Rs 100.91 crore in Q1 2019.

    Eros consolidated Total Expenditure in Q1 2020 increased 16.8 percent y-o-y to Rs 170.99 crore from Rs 146.45 crore. Consolidated Films rights costs including amortisation costs declined 25.8 percent y-o-y to Rs 66.93 crore in Q1 2020 from Rs 90.15 crore. Consolidated Employee Benefits Expense in Q1 2020 declined 19.8 percent y-o-y to Rs 10.86 crore from Rs 13.54 crore. Consolidated net finance costs declined 9.3 percent y-o-y to Rs 17.68 crore from Rs 19.50 crore. Consolidated Other expenses for the period under review more than tripled (increased 264.5 percent) y-o-y to Rs 69.81 crore from Rs 19.15 crore in the corresponding year ago quarter.

    It must be noted that this report is purely a numbers report based only on the company’s consolidated financial results.

    The last traded price of Eros International Media Ltd on the NSE was Rs 9.50 per equity share of face value of Rs 10 each on 12 August 2019. The 52 week high/low prices were Rs 133.50/Rs 9.50.

  • Eros Now aims to accelerate subs addition within millennial, post-millennial audiences

    Eros Now aims to accelerate subs addition within millennial, post-millennial audiences

    BENGALURU: The Sunil Lulla-led Eros International Media Ltd (Eros) reported higher revenues on more film releases and a slight decline in profit after tax for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter (Q3 2018). 

    Eros released 25 films and 3 Eros Now original series in Q3 2019 as compared to just four films in Q3 2018. Twenty three of the releases in Q3 2019 were small budget, while two were medium budget films as compared to four small budget films in Q3 2018. Further, in Q3 2019, six of the releases were Hindi, two were Tamil/Telugu and the rest (17) were regional films. In Q3 2018, Eros released three Hindi movies and one regional movie.

    Eros’s revenue streams have undergone a marked shift in contributions to overall revenue over time. The percentage of theatrical revenues has come down, while television plus others and overseas has gone up.  For fiscal 2018 (year ended 31 March 2018, FY 2018), Eros had reported 42.8 percent of revenue from theatrical releases, 46.3 percent revenue share from television and others which included revenue from digital platforms and 10.9 percent from overseas.  For Q3 2019, the company has reported 24.6 percent, 52.4 percent and 23 percent contributions from theatrical releases, television and others, and overseas respectively.

    Eros has projected rapid growth in paid subscribers for its digital platform ErosNow at the end of fiscal 2019 (year ending 31 March 2019) at 16 plus million as compared to 13 million at the end of Q2 2019. The company is banking on its long standing and exclusive partnerships with major Indian telecom and mobile data players – Jio, Airtel and the merged Vodafone-Idea to add more paid subscribers to ErosNow.

    Company speak

    Eros executive vice chairman and MD Lulla said, “We are pleased to announce strong results during the quarter, delivering 62.1 percent total income growth and consistent profits. Our focused approach of choosing a balanced slate spanning genres, languages and budgets, continues to deliver positive results. During the quarter, we released a total of 25 films and three digital series, comprising of an interesting mix of genres ranging from comedy to horror and crime thriller, which received encouraging responses. The theatrical slate included the critically acclaimed Tumbbad, Boyz 2 (Marathi), Mumbai Pune Mumbai 3 (Marathi) and our twin Telugu releases Amar Akbar Anthony and Savyasachi amongst others. A strong slate of overseas releases of Andhadhun (Hindi), Helicopter Eela (Hindi) and Namaste England (Hindi) further supported performance during the quarter.

    "In this quarter, we released three original web series – the crime thriller Smoke, the entertaining and quirky Date Gone Wrong and the fun-series Paisa Fek Tamasha Dekh on ErosNow, which received positive audience ratings and were equally applauded by the critics. We are committed to bring fresh and engaging digital content targeted primarily to the millennial audiences on the ErosNow platform, and have an exciting pipeline of original content lined up for the upcoming quarters. We are confident with our exciting content offering the pace of subscriber addition for ErosNow will further aaccelerate

    "As we look ahead, we have a compelling film slate which includes Saif Ali Khan starrer Kaptan, the trilingual remake of Haathi mere Saath, Kaamiyab, Ticket to Bollywood, and a host of regional releases. In addition, we have a host of remarkable originals such as Dashavtar, Ponnyin Selvan, Flesh, Bhumi coming up on ErosNow, that we look forward to releasing in the upcoming quarters.”

    Let us look at the numbers reported by Eros

    Eros reported a 52.9 percent jump in operating revenue for the quarter ended 31 December 2018 (Q3 2019, period or quarter under review) at Rs 292.88 crore as compared to Rs 193.51 crore in the corresponding year ago quarter (y-o-y comparison). Profit after tax (PAT) and total comprehensive income (TCI) for the period under review fell 7.4 percent and 58.9 percent (more than respectively) respectively y-o-y. Total income increased 62.2 percent y-o-y in Q3 2019 to Rs 332.28 crore as compared to Rs 201.97 crore in Q3 2018. PAT in Q3 2019 was Rs 62.19 crore as compared to Rs 67.16 crore in Q3 2018. TCI in Q3 2019 was Rs 23.06 crore as compared to Rs 56.16 crore in Q3 2018.

    Eros reported 107.9 percent y-o-y increase in total expenditure in Q3 2019 at Rs 255.42 crore from Rs 122.86 crore in Q3 2018. Films rights costs including amortisation costs increased 101.3 percent y-o-y to Rs 145.51 crore from Rs 72.30 crore in the corresponding quarter of the previous fiscal. Employee benefits expense in Q3 2019 declined 11.2 percent y-o-y to Rs 12.56 crore from Rs 14.14 crore in Q3 2018.

    Finance costs reduced 13 percent y-o-y in Q3 2019 to Rs 15.95 crore from Rs 18.33 crore in the previous year’s corresponding quarter. Other expenses in the quarter under review more that quintupled (increased by 402.2 percent) y-o-y in Q3 2019 to Rs 77.54 crore from Rs 15.44 crore in Q3 2018.

  • Eros International profits up in first quarter

    Eros International profits up in first quarter

    BENGALURU: The Sunil Lulla-led Indian film and media company Eros International Media Limited (Eros) reported 25.3 per cent year on year (y-o-y) jump in profit after tax (PAT) for the quarter ended 30 June 2018 (Q1 2018, quarter, period under review) as compared to the corresponding year ago quarter (Q1 2018). Eros reported PAT at Rs 59.95 as compared to PAT of Rs 47.86 crore in Q1 2018. On account of items that will be classified later as a profit or a loss, total comprehensive income more than doubled (up 1.31 times)y-o-y to Rs 100.91 crore in Q1 2019 from Rs 43.56 crore.Calculated simple EBIDTA for the period under review increased 48.6 per cent y-o-y to Rs 93.33 crore (42.8 per cent of operating revenue) from Rs 47.86 crores (24.2 per cent of operating revenue.)

    Eros operating revenue in Q1 2019 declined 16.1 per cent y-o-y to Rs 217.93 crore from Rs 259.62 crore. Total Income declined 18.2 per cent y-o-y to Rs 223.57 crore from Rs 273.36 crore.

    The company says in its earnings presentation that revenues during the quarter were driven by releases of Bhavesh Joshi(Hindi), Meri Nimmo (Digital release), Blackmail (Overseas), Haami (Bengali), Goodnight City (Bengali), Alinagarer

    Golokdhadha (Bengali) and others. Eros released a total of 14 films during the quarter, consisting of 1 medium budget and 13 low budget films  as compared to 5 films in Q1  2018, consisting of 1 High Budget, 1 Medium Budget and 3 Low Budget Films). TV and Others segment included satellite sales of catalogue films to Zee TV and others.

    Eros says that Theatrical Revenues contributed – 30.7 per cent, Overseas Revenues – 12.6 per cent and Television & Others – 56.7 per cent as a percentage of income from operations.

    Company speak

    Eros executive vice chairman and MD Lulla  said: “We have started the year on an excellent note on operational and strategic parameters. Our strategy of a content driven approach reflected in a robust green lighting process enabling us to de-risk our model. Our film content is deeply researched and evaluated for its revenue potential across platforms and markets by our business leaders, due to which we were able to again deliver margin enhancing performance in Q1 2019.

    The new JV kicking in with V. Vijayendra Prasad for Hindi and regional content and Reliance Eros Productions LLP for USD 150 million already in process is bound further boost our content strategy and reflect in our financial performance in the forthcoming quarters. The first quarter was marked by the successful releases of our films which contributed to the overall growth. Our strong slate across languages, active pre-sales and catalogue monetization of our films ‘ library further supported the performance during the quarter. Looking ahead, we have drawn a compelling line-up for the remainder of the year featuring high-potential movies such as Color Yellow Productions Happy Phir Bhaag Jayegi, Anurag Kashyap’s Manmarziyan, the IndiaChina co-productions, Panda by Kabir Khan, trilingual Haathi mere Saathi and multiple other films across languages.

    Lulla further added, “As always, we continue to be a pioneer in industry innovations in catering to the changing tastes and preferences of the audiences. In this quarter, we released Meri Nimmo straight-to-digital on the Eros Now platform. I am happy to share that the film received a tremendous response from the audience and we look forward to launching more such films and originals on the Eros Now platform during the course of this fiscal. Along with it the roll-out of fresh and strong original content, makes us confident that the pace of subscriber addition for Eros Now will further accelerate, going from 50 to 100 cities and almost doubling the subscriber base to 16 million by end of the Fiscal year.”

    Let us look at the other numbers reported by the company

    Total Expenditure (TE) during the period under review declined 32.8 per cent y-o-y to Rs 146.45 crore as compared to Rs 217.81 crore in the corresponding quarter of the previous year.

    Films rights costs including amortisation costs in Q1 2019 declined 29.6 per cent y-o-y to Rs 90.15 crore from Rs 128.12 crore in the corresponding quarter of the previous year. Employee Benefits Expense in Q1 2019 declined 14.5 per cent y-o-y to Rs 13.54 crore as compared to Rs 15.83 crore in Q1 2018. Other expenses (OE) in the Q1 2019 reduced 63.8 per cent y-o-y to Rs 19.15 crore as compared to Rs 52.84 crore in the corresponding quarter of the previous year. Finance costs in Q1 2019 increased 5 per cent y-o-y to in Q1 2019  Rs 19.5 crore from Rs 18.58 crore.

  • Eros International profit margins up in FY 2018

    Eros International profit margins up in FY 2018

    BENGALURU: The Sunil Lulla-led Indian film and media company Eros International Media Ltd (Eros) saw EBITDA for the quarter ended 31 March 2018 (FY 2018, year, fiscal under review) of Rs 328.21 crore and a margin of 34.2 per cent of operating revenue, about 985 basis points more than the margin of 24.3 per cent for the previous year. PAT margin in FY 2018 also increased 606 basis points to 22.89 per cent of total revenue from 16.83 per cent in the previous fiscal. EBIT margin was 36.42 per cent of total income in FY 2018 as compared to 26.07 per cent of total income in the previous fiscal.

    Eros says that in FY 2018 it redefined its portfolio mix – margin expansion by investing in content driven films with high ROI potential and where the content risk was largely covered, in turn making Eros lesser dependent on box office numbers. The company’s revenues declined sharply in the year under review as compared to the previous year. Eros net sales/income from operations declined 31.4 per cent to Rs 960.16 crore in fiscal 2018 from Rs 1,399.70 crore in the previous year. Total income reduced 30.1 per cent in FY 2018 to Rs 1,010.01 crore from Rs 1,445.28 crore in FY 2017.

    Though EBITDA and EBIT margins were higher, overall, both these profit matrices declined in terms of rupees. EBITDA in FY 2018 at Rs 328.31 crore was 3.7 per cent lower than Rs 340.75 crore in FY 2017. EBIT in FY 2018 at Rs 367.88 crore was 2.4 per cent lower than the Rs 376.75 crore in the previous fiscal. PAT in the year under review at Rs 231.22 crore was five per cent lower than Rs 243.29 crore in FY 2017.

    Eros reported 35.7 per cent decline in total expenditure in FY 2018 at Rs 722.66 crore from Rs 1,123.05 crore in FY 2017. Films rights costs including amortisation costs declined to almost half (down 49.1 per cent) in FY 2018 at Rs 399.27 crore from Rs 784.84 crore in the previous fiscal. Employee benefits expense in FY 2018 declined 16.4 per cent to Rs 58.94 crore from Rs 70.53 crore in FY 2017.

    Finance costs increased 47.7 per cent in FY 2018 to Rs 80.53 crore from Rs 54.22 crore in the previous year. Other expenses reduced 12.8 per cent in FY 2018 to Rs 175.05 crore from Rs 200.64 crore in FY 2017.

    In its investor presentation, Eros says that revenue breakup as percentage of revenue from operations for FY 2018 was theatrical revenue 42.8 per cent; television and others 46.3 per cent; and overseas 10.9 percent. For FY 2017, the company had indicated break up as theatrical 42.5 per cent; television and others 31.1 per cent; overseas 26.4 per cent. Hence, contribution of revenue from television and others in FY 2018 was much higher than in the previous year. Theatrical revenue was about the same in both the years, and revenue from overseas declined sharply in FY 2018 as compared to FY 2017.

    The company released 25 films – one high budget, four medium budget and 19 low budget films in FY 2018. Of these films, 14 were Hindi, one was Tamil/Telugu and nine were in regional language films.

    In FY 2017, Eros had released 44 films – five high budget films, 10 medium budget films and 29 low budget films. 11 films were Hindi, 18 in Tamil/Telugu and 15 were regional films.

    Eros says that it remains focused on its film pipeline, with 40 to 50 films across languages slated to release during financial year 2019.

    Eros Now

    The company says that its subscriber base for its OTT platform Eros Now has grown to 100 million (10 crore, 1,000 lakh) in FY 2018 from 60 million (6 crore, 600 lakh) at the end of the previous year. Paying subscriber base for the platform has grown to 7.1 million (0.71 crore, 71 lakh) in FY 2018 from 2.1 millon (0.21 crore, 21 lakh) at the end of the previous year.

    Company speak

    Eros executive chairman and managing director Lulla said, “This year has been an inflection point for Eros where we have truly turned the corner and grown in to India’s first fully vertically integrated independent studio. The pioneering spirit is prevalent in our leadership DNA as we further consolidate a fragmented market place as well as making Indian filmed entertainment truly global. As the dynamics of the country change with connectivity at the core of distribution we are uniquely positioned to leverage these trends with content being the key driving force. Our strategy of a content driven approach reflected in a robust green lighting process enables us to de-risk our model with an increasingly successful slate, with Newton India’s entry to the Oscars, hit comedy Shubh Mangal Savdhan and sports based drama Mukkabaaz.

    “Additionally the democratisation of theatrical consumption of content has skewed our strategy to be increasingly focused on catering to the regional demographic which is reflected in our slate mix Aamhi Doghi (Marathi), Rong Beronger Kori (Bengali), Oru Kidayin Karunai Manu (Tamil), Aake (Kannada), Viswa  Vikhyatharaya Payyanmar (Malayalam) amongst others.

    “Looking ahead to this coming year we are excited about our future slate with a trilingual remake of our classic library film Haathi Mere Saathi directed by Prabhu Salomon, starring Rana Daggubati as well as Bhavesh Joshi.  Leveraging our group’s strong talent relationships built over the past 40 years is also key to our growth trajectory. The relationship we share with Colour Yellow Productions and Anand L Rai has enabled us not to only to have a strong theatrical release pipeline with Manmarziyan and sequel to blockbuster film Happy Bhag Jayegi, Happy Phir Bhag Jayegi starring Sonakshi Sinha, but also to break the norms across the entertainment ecosystem. We successfully premiered India’s first straight to digital film, Eros Now original, Meri Nimmo on our platform. As we make strides foraying into original content, we are confident our film and originals slate will contribute further to accelerating Eros Now’s paying subs growth which this year itself is over 270 per cent.

    “With content slate and scale being a key driver, we have also entered into the strategic content partnership with Reliance Industries to jointly produce and consolidate content across India. The $150 million joint venture adds significant scale to Eros’ pre existing slate while mitigating investment risks as we benefit by leveraging our robust distribution network. We look forward to collaboratively growing this joint venture and further strengthening our fundamentals; content creation, distribution and a robust balance sheet allowing us to experience momentous improvements in our margins.

    “We have ended the fiscal with a very strong quarter with an EBIT growth of 61.5 percent and a PAT growth of 80.4 per cent. For the full year FY2018, the company has witnessed the EBIT margin increase at 10.3 per cent and an increase of 4.9 per cent PAT margin. We look forward to fiscal 2019 by further proving our strategies and paving the road ahead for a truly global Indian entertainment experience.”

  • Eros reports higher profit margin despite fewer releases

    Eros reports higher profit margin despite fewer releases

    BENGALURU: Sunil Lulla-led Eros International Media Limited (Eros) reported 21 per cent margin (on operating income) for consolidated profit after tax (PAT) for the quarter ended 30 September 2017 (Q2 FY 2017-18) as compared with 12.8 per cent margin for the corresponding quarter a last ago. The company’s revenue shrunk by 44 per cent during the quarter under review as against Q2 FY 2016-17. Eros released just seven films (two medium and five small-budget films) in Q2 FY 2017-18 as compared with 17 (including two high-budget films) in the quarter ago quarter. Earnings before interest and taxes (EBIT) margin on total income for the quarter under review was 31.7 per cent as compared with 19.9 per cent in Q2 FY 2016-17. Though the profit margin was higher in this year’s quarter, overall actual profit was lower than the profit reported for Q2 FY 2016-17 because revenue during the period last year was much higher.

    Company speak

    Eros vice chairman and managing director Sunil Lulla said, “We have reported healthy performance during the quarter on the back of strong releases, satellite sales, and higher contribution from library monetisation. During Q2-18, we released films such as the hit comedy Shubh Mangal Savdhan, the much-celebrated Newton starring Rajkumar Rao, the Tiger Shroff‐starrerMunna Michael, Trinity’s first release Sniff, and Projapati Biskut(Bengali).”

    “It is a matter of pride for us thatNewton was chosen as India’s official entry for the Best Foreign Language Film category at the Oscars 2018. This underscores our strategy of focussing on content-driven films rather than high-budget, big-star formula films. During the period, the company also continued to focus towards investing in a Hindi and regional film language slate and Trinity Pictures, India’s first franchise‐driven studio,” revealed Lulla.

    “Looking forward, we have a host of highly anticipated releases coming up, which include Mukkabaaz in January,Happy Bhaag Jayegi Returns,Chandamama Door Ke, the India‐China co‐productions, Panda by Kabir Khan, Trinity Pictures’ Elephant Man by national-award-winning director Prabhu Solomon, and the Colour Yellow Productions film starring Shah Rukh Khan,” he said.

    The reported numbers

    Eros reported operating revenue of Rs 2,682.6 million for Q2 FY 2017-18 as compared with Rs 4,787.9 million in Q2 FY 2016-17. Total income, including other income, for the quarter under review declined by 44 per cent year-on-year to Rs 2,739.3 million from Rs 4,887.3 million. The company has given the breakup of revenue in its investor presentation for the quarter as follows: 36.7 per cent for theatrical; 13.3 per cent for overseas revenue; and 50. Per cent for television & others.

    Profit after tax in Q2 FY 2017-18 declined by 8 per cent y-o-y to Rs 575.1 million from Rs 625.2 million. EBIT was 10.7 per cent lower y-o-y in the quarter under review at Rs 867.5 million as compared with Rs 971.5 million. Operating profit (EBIDTA) for the quarter declined by 6.4 per cent y-o-y to Rs 835.2 million (31.1 per cent margin) from Rs 892.2 million (18.6 per cent margin).

    Total expenditure declined by 48.2 per cent y-o-y to Rs 2,085.4 million during the quarter from Rs 4,022.4 million. Film rights costs, including amortisation costs, are a major cost head for Eros. These costs declined to less than half y-o-y to Rs 1,189.5 million in Q2 FY 2017-18 from Rs 2,762.9 million Q2 FY 2016-17.

    Employee benefits expense declined by 9.4 per cent y-o-y to Rs 150.4 million from Rs 166.0 million. Finance costs doubled to 100.4 per cent in the quarter under review to Rs 213.6 million from Rs 106.6 million. Other expenses decreased 21.9 per cent y-o-y in Q2 FY 2017-18 to Rs 507.1 million from Rs 649.7 million.

     

  • Eros profit grows despite lesser releases, demonetization

    BENGALURU: The Sunil Lulla led Eros International Media Limited (Eros) reported 7.9 percent growth of consolidated profit after tax attributable (PAT) to Eros shareholders for the year ended 31 March 2017 (FY-17, current year, fiscal) despite releasing lesser films and demonetisation as compared to the previous year. Eros consolidated (PAT) for FY-17 was Rs 2,432.9 million (18.4 percent of Income from Operations) and Rs 2,386.7 million (15.1 percent of Income from Operations) for FY-16.The company’s Income from Operations in FY-17 dropped 11.6 percent to Rs 13,997 million from Rs15,826.8 million in FY-16.

    The company released a total of 44 films including 5 high budget, 10 medium budget and 29 low budget films in FY-17 as compared to a total of 63 films including 6 high budget, 16 medium budget and 41 low budget films during the FY-16. In its investor presentation for FY-17, the company says Theatrical Revenues contributed – 42.5 percent, Overseas Revenues – 26.4 percent and Television & Others – 31.1 percent as a percentage of Income from Operations.

    Eros reveals that Theatrical revenues in FY-17 included releases of ‘Housefull 3’, ‘Ki & Ka’, Baar Baar Dekho, Banjo, ‘Happy Bhaag Jayegi’, ‘Rock On 2’, ‘Nil Battey Sannata’, Kahaani 2 (overseas), Dishoom and regional films include Sardaar Gabbar Singh (Telugu), 24 (Tamil), Janatha Garage (Telugu), C/O. Saira Banu (Malayalam), Engitta Modhathe (Tamil), Bibaho Diaries (Bengali),

    Singham 3 (Tamil), ‘Baghtos Kay Mujra Kar’, Chaar Sahibzaade2 (Punjabi) etc.

    Total Income reduced 11.1 percent to Rs 14,452.8 million in FY-17 from Rs 16,257 million in the previous year. EBIT (Earnings before interest and taxes) increased 6.1 percent to Rs 3,767.5 million (26.9 percent of Income from Operations) in FY-17 from Rs 3,549.3 million (15.1 percent of Income from Operations).

    Company Speak

    Eros executive vice chairman and managing director Lulla said: “It is a matter of satisfaction that we have ended the fiscal year on a steady note despite the impact of demonetization on theatrical revenues in H2 of FY-17. This performance has been enabled by Eros’ consistent pre‐sales strategy which helps us de‐risk our business, effective monetization of our 2000 plus films library and a strong regional film strategy during the year.

    The Indian film sector has attracted a lot of interest from international majors to build their film libraries in the recent past and as a result has driven up value of the Indian content. Eros’ key asset – a market leading content library is a major beneficiary of this trend which is only likely to become stronger. At the same time, in order to effectively manage the cost of our future content,

    the company has taken active steps to develop its own intellectual properties over the past 2 years. The launch of Trinity Pictures, our film label for franchise films, investments in our joint venture Colour Yellow Productions and identifying the right films to sequel from our film library are concrete steps taken in this direction. We are excited about these developments and are

    looking forward to FY-18 which will see the fruition of this strategy in a significant manner.

    We are proud to have established a company with leadership position in a market that continues to witness strong growth and are confident that with our new initiatives, we will continue to enhance our market position.”

    Let us look at the other numbers reported by Eros

    Simple EBIDTA including other income in FY-17 increased by 6.1 percent to Rs 3,863.3 million (27.6 percent margin of Income from Operations) from Rs 3644 million (23 percent of Income from Operations).

    Consolidated Net Finance cost in the current year increased 61 percent to Rs 545.2 million from Rs 338.6 million in the previous year.

    Total Expenditure in FY-17 declined 13.9 percent to Rs 11,230.5 million (80.2 percent of Income from Operations) from Rs 13,046.3 million (82.4 percent of Income from Operations) in FY-16. The company’s Films rights costs including amortisation costs in FY-17 declined 12.5 percent to Rs 7,848.4 million (56.1 percent of Income from Operations) from Rs 8,964.8 million (56.6 percent of Income from Operations) in FY-16.

    Employee Benefit Expense in the current year increased 25.5 percent to Rs 705.3 million (5 percent of Income from Operations) from Rs 561.9 million (3.6 percent of Income from Operations) in FY-16. Other expenses in FY-17 increased by 14.6 percent to Rs 2006.3 million (14.3 percent of Income from Operations) from Rs 1,751.2 million (11.1 percent of Income from Operations) in the corresponding of the previous year.

  • Eros profits more than double in third quarter 2017

    BENGALURU: The Sunil Lulla led Eros International Media Limited (Eros) reported almost 2.5 times (2.496 times) consolidated profit after tax (PAT) for the quarter ended 31 December 2016 (Q3-16, current quarter) as compared to the corresponding year ago quarter (Q3-16). Eros PAT for the current quarter was Rs 101.88 crore (30.7 percent of Total Income from Operations or TIO, margin) as compared to Rs 40.81 crore (12.2 percent margin) in Q3-16.

    The company’s release slate was affected by demonetisation in Q3-17. Arsing from this, Eros said in its investor presentation that it has withheld the release of some films until the situation normalises. It says that the marginal decrease in consolidated revenues is on account of a narrower film slate comprising three medium budget and 5 small budget films in Q3-17 as compared to one high budget, 4 medium budget and 10 small budget films during the Q3-16 offset by comparatively stronger catalogue revenues. Hence consolidated TIO in the current quarter declined 1 percent year-over-year (y-o-y) to Rs 332.12 crore as compared to Rs 335.38 crore in the corresponding quarter of the previous year.

    Company speak

    Commenting on the performance of Q3-17, Eros, executive vice chairman & MD Sunil Lulla said, “This quarter results gave us a chance to bring out the strength of our valuable library. In spite of demonetization move by the Government which had a temporary negative impact on theatrical revenues, we demonstrated our robust business model by bringing in strong contributions from catalogue sales across television and other distribution channels. Rock On 2 although impacted directly by the demonetization benefited from strong pre‐sales in television and digital streams. Although the movies released during the quarter witnessed weak box office performances due to lack of footfalls, we firmly believe, that the demonetization step, in the longer term, will throw up a huge opportunity for us to strengthen our lead in corporatising the Indian Media and Entertainment industry.”

    “As we look ahead, we are investing smartly for the longer term in‐line with our portfolio approach across varied budgets and languages. Our strong industry‐leading production slate of over 50 movies in CY-17 (Calendar Year) has gone through a stringent green‐lighting process for many months. The upcoming line‐up includes highly promising projects such as five films from Trinity, two Indo‐China co‐productions, a Shahrukh Khan film from Color Yellow, two sequels from our own IPs like Vicky Donor‐2, Badlapur‐2, Munna Michael starring Tiger Shroff, Chanda Mama Door Ke starring Sushant Singh, amongst others.”

    Let us look at the other numbers reported by Eros

    Simple EBIDTA without other income in Q3-17 almost doubled (increased by 97.2 percent) y-o-y to Rs 131.39 crore (39.6 percent margin) from Rs 66.64 crore (19.9 percent margin).

    Consolidated Net Finance cost in the current quarter increased 48.2 per cent y-o-y to Rs 11.93 crore from Rs 8.05 crore.

    On account of the lower number of films released, Total Expenditure in Q3-17 declined 25.2 percent to Rs 203.18 crore from Rs 271.54 crore in Q3-16.  The company’s Films rights costs including amortisation costs in Q3-17 declined 24.1 percent y-o-y to Rs 151.23 crore from Rs 199.28 crore.

    Employee Benefit Expense in the current quarter increased 43 percent to Rs 20.48 crore from Rs 14.32 crore in Q3-16. Other expenses in Q3-17 declined by almost half (declined by 49.5 percent) y-o-y to Rs 28.86 crore from Rs 57.11 crore in the corresponding of the previous year.

    ErosNow

    The company says that Eros International’s OTT Platform Eros Now has over 20 lakh (2 million) subscribers worldwide, it has 5.5 crore (55 million) registered users worldwide across WAPP, APP and the web. The platform has rights to over 5,000 films, 250,000 audio tracks with 13 music labels providing music content.

  • Q1-17: Diversified mix boosts Eros revenue

    Q1-17: Diversified mix boosts Eros revenue

    BENGALURU: The Sunil Lulla-led Eros International Media Limited (Eros) reported 22.2 percent increase in total revenue including other income (TR) for the quarter ended 30 June 2016 (Q1-17, current quarter) as compared to the corresponding quarter of the previous year (Q1-16).

    Eros reported lower revenue of Rs 411.08 crore in the current quarter as compared to total revenue of Rs 480.59 crore in Q1-16, but considering the one-time sale of digital rights of Rs. 1,44.20 crore, its revenue for Q1-16 works out to Rs 336.39 crore. The company says that a diversified movie mix that included worldwide releases of
    Housefull 3, Ki and Ka, Nil Battey Sannata, Sardaar Gabbar Singh (Telugu), 24 (Tamil), amongst other releases helped in the double-digit increase in revenue.

    Total comprehensive income including other income after taxes in Q1-17 increased 42.9 percent year-over-year (y-o-y) to Rs 73.87 crore (18percent margin) from Rs 51.70 crore (15.4 percent margin on Rs 336.39 crore, 10.9 percent margin on TR).

    Finance cost in the current quarter increased 9.7 percent y-o-y to Rs 9.40 crore from Rs 8.57 crore. Total Expenditure in Q1-17 declined 14.4 percent to Rs 329.37 crore from Rs 384.94 crore in Q1-16. Employee Benefit Expense in the current quarter increased 52.6 percent to Rs 17.50 crore from Rs 11.54 crore in Q1-16.

    The company also had a diversified revenue mix comprising Theatrical Revenues – 52.1%, Overseas Revenues – 17.2% and Television & Others – 30.7% as a percentage of Income from Operations.

    Company speak

    Commenting on the performance of Q1-17, Eros, executive vice chairman & MD Sunil Lulla said, “Fiscal 2017 has begun on an excellent note for Eros International with notable progress on operational and strategic parameters. Our approach towards investing in high quality portfolio of film content, which is greenlit at appropriate budgets and is monetized across various revenue streams, continues to yield positive results.”.

    “This year is also marked by strong pre-sales of majority of our film slate including, Dishoom, Baar Baar Dekho, Rock On 2, Banjo as well as regional films to leading satellite channels, as a part of our de-risking strategy and ensuring revenue and cash flow visibility,” Lulla said.

    “Q2-17 has also begun well with the power packed performance of Dishoom and Happy Bhaag Jayegi and our Telugu release Janatha Garage is heading to be the biggest Telugu grosser of this year,” Lulla added.