HONG KONG -- Profits increased by half at Indian film giant Eros Intl., fueled by growing worldwide theatrical business and TV syndication for Bollywood movies.
In the year to March, the company saw revenues climb by 70% to $113 million. It recorded pre-tax profits of $45.5 million, compared to $30.9 million the previous year. Earnings per share grew at a slower 12% to 33.5 cents.
At a time when talent costs are pushing up content expenses and creating a barrier for new players, the company -- having already secured more than 60 projects through an investment of more than $200 million over the last two years -- will greatly profit from the growing box office driven by multiplexes and rising ticket prices, chairman and CEO Kishore Lullasaid.
Company released 18 movies in the year, 16 globally, a development that Lulla said defies suggestions that it is a hit-driven business. Worldwide theatrical revenues more than doubled from $21.1 million in 2006-07 to $52.1 million in the past year.
Within India, Eros syndicated its movies to Sony Entertainment Television, INX, Viacom and Sahara, increasing TV revenues by 56% to $33 million.
Helped by digital distribution deals with Amazon, Wal-Mart, and subscription video-on-demand deals with SingNet, RTM Malaysia and Cablevision, new media revenues grew 17% to $27.7 million.
Past year saw Eros strike a co-production joint venture with Sony Pictures, and a distribution joint venture for South Asia with Lionsgate. It also exercised its option to buy shares in the B4U network of channels and now owns 24% of the company. Lulla said TV expansion will be the thrust of growth in the next 12 to 18 months.
Company is listed on the London Stock Exchange's Alternative Investment Market.
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