Eros International Reports Second Quarter Fiscal Year 2018 Results


 
 
09:08 11/25/2017

Eros International Plc EROS , a leading global company in the Indian film entertainment industry, recently reported its quarterly financial results for the three and six months ended September 30, 2017.

Key Highlights

• Eros Now grew its paying subscriber base at over 70% (YTD) from 2.1 million at March 31, 2017 to 3.7 million as of September 30, 2017. As of September 30, 2017, the registered users reached over 75 million. Company re-affirms previous guidance of 6-8 million paying subscribers by FYE 2018.

• Eros Now expands global footprint by entering into a partnership with Telecel Global in the South African market.

• Eros Now partners and launches with Roku, continuing to increase its global OTT footprint across US, UK, Canada, France, South America.

• Eros Now continues to widen its platform agnostic strategy with premium placement on LG SmartTVs worldwide.

• Eros has $113 million of cash on the balance sheet as of September 30, 2017.

• Consolidated revenue for the three months ended September 30, 2017 was $63.3 million.

• Operating profit for the three months ended September 30, 2017 was $14.4 million.

• Adjusted EBITDA for the three months ended September 30, 2017 was $15.1 million which resulted in a margin of 23.9%.

• Net debt decreased by 13% to $137.2 million as at September 30, 2017 from $157.6 million as of March 31, 2017.

• Eros Now original slate continues to grow, now also including straight to digital feature films, short films and original series.

Jyoti Deshpande, Eros’ Group Chief Executive Officer and Managing Director said, “We are pleased to announce another strong quarterly performance. We continue to transition the company from a leading film studio to a digital company as we build on the momentum of our Eros Now platform which has crossed over 3.7 million paying subscribers. 4G telecom based growth in India continues to be bouyant and Eros Now continues to grow favourably due to the exclusive and dynamic relationships we have built with the leading telcos in India. We are confidently on track to hit our 6-8 million paying subscriber target by the end of fiscal 2018 and at least doubling that by the end of fiscal 2019. Over the past few months we have entered into several new distribution partnerships with both OEM’s and distributors - including Roku, LG and Telecel Global in South Africa. As we grow our Eros Now userbase outside of India, these partnerships will be very important for us to reach as many new markets and customers as possible growing our base in the most efficient and effective ways.”

Prem Parameswaran, Group Chief Financial Officer and President of North America also commented, “We delivered strong financial results in the quarter and first six months of Fiscal Year 2018. On the operational side, we had several well-received theatrical releases this quarter as well as robust TV syndication revenues. We posted one of our best ever quarters for digital and ancillary revenues, buoyed by the success of Eros Now and growth in paying subscribers, which we had highlighted last month. For the six months ended September 30, 2017, operating profit increased substantially compared to the year ago period, with operating profit and Adjusted EBITDA margins of 21.1% and 24.9%, respectively. With over $113 million of cash on our balance sheet and a reduction in short-term borrowings, our balance sheet remains strong and we are well capitalized for future growth. Our trailing twelve month net leverage stands at 2.5x and our total debt to capitalisation ratio is 21%.”


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