Eros’ H1 turnover up 58.7% to $34.6 mn

MUMBAI: Eros International’s turnover for the six months ended 30 September 2007 (H1) is up 58.7 per cent to $34.6 million as compared to $21.8 million in 2006.

The London AIM listed company said that it is on track to achieve full year performance in line with expectations. Eros’ 44 per cent of revenues came from India compared to 30 per cent for the year to end-March, while 56 per cent of revenues came from the international business against 70 per cent for the year to end-March.

Eros’ EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 85.1 per cent to $24.5 million as compared to $13.2 million in 2006.

Profit before tax increased from $7.7 million in 2006 to $13.6 million in 2007, which was up 75.9 per cent.

The cash flow generated from operating activities is $ 15.4 million as compared to $11.1 million in 2006.

The company’s market share increased from an aggregate of 32 per cent between 1998-2007. Eros’s market share in the period January-November 2007 increased to 47 per cent according to UK EDI Nielsen.

Eros has shown a strong growth in domestic box office with five out of Top 10 box office grossers in 2007 being Eros releases.

On the television front, it inked a deal with Sony in March this year and the results reflected the TV syndication revenues.

The company also inked new media deals with Sky Anytime, Joost, NME, Vudu, Mauritius telecom and Singnet apart from ongoing revenues from Comcast and Mauj Telecom.

On the joint ventures and acquisitions front, Eros acquired a majority stake (51 per cent) in Ayngaran business to enter the Tamil film market. It also launched Eyeqube Studios in collaboration with Hollywood visual effects talent Charles Darby. The company recently also inked a co-production deal with Sony Pictures for a slate of films.

Eros also tapped new international markets for content. It continued to open new dubbed markets and expand distribution network with mainstream cinema chains and DVD retailers.

The company’s future content pipeline secured and is shifting to global releases with 100 per cent visibility for 2008-09 releases, 70 per cent for 2009-10 and 40 per cent for 2010-11.

Eros International chairman and CEO Kishore Lulla said, “Eros has continued to deliver on its strategy of consolidating the Indian entertainment market, expanding its audience reach by leveraging its local distribution network. We are delighted with our continuing momentum and our ability to deliver growth and profits while maintaining margins. Our rich content library and unrivalled global distribution infrastructure separates us from other players in the space. Our business is still at an inflection point and we are confident that we have the strategy as well as management to take advantage of the immense opportunity in front of us. We remain confident of a successful outcome to the current financial year.”

At the time of filing this report, the company’s share price on AIM was up 2.58 per cent at 390 pence.