India's Eros' earnings elevated
Revenues climbed by 70% to $113 million
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.
