MUMBAI: Eros International Media Limited announced its maiden results since its listing on BSE and NSE in October this year. The company has posted a net profit of Rs 453 million (Rs 45.3 crore), up 13 per cent in the second quarter and half year ended September 30, 2010.
The company had reported a net profit of Rs 401.6 million (Rs 40.16 crore) in the July-September quarter last year. However, the company’s total income declined to Rs 1.88 billion (Rs 187.9 crore) in the September quarter, from Rs 2.72 billion (Rs 271.8 crore) in the year-ago period. The company’s EBIT increased to Rs 562.7 million (Rs 56.27 crore) from Rs 583.1 million (Rs 58.31 crore) in Q2.
In the first half of 2010, Eros released films like Housefull, Anjaana Anjaani, Paathshaala and overseas release of Dabangg & Endhiran (Tamil & Telugu), Ravanan, Singham, Sura (in Tamil) and Haapus in Marathi. The company recently also released Golmaal 3.
Going ahead, the films that are lined up for release are: No Problem, Game, Toonpur ka Superhero.
Eros International Media MD Sunil Lulla said, "This has been an extremely successful year for Eros International including the overwhelming response to our IPO. At the heart of our business strategy is our catalogue, our strong movie pipeline mainly tied up through our co-productions and our strong distribution network in India and international market leadership through our parent Eros International plc. With over a 30-year successful track record backed by a unique de-risked business model underpinned by our portfolio pre-sales approach, we are proud to have achieved a scale second to none by staying focused and building on our core competency of content and distribution."
"We are confident that our Hindi and regional strategy will continue to allow us to maintain a sustainable competitive advantage and offer us the opportunity to rapidly consolidate our position in this exciting and rapidly growing Indian media and entertainment sector," added Lulla.
For H2 FY 2011, FY 2012 and 2013, Eros has more than 50 films lined up for release in various languages including Shah Rukh Khan’s Ra.One, Hrithik Roshan’s Zindagi Na Milegi Dobara, Ranbir Kapoor’s Rockstar, Akshay Kumar, John Abraham, Deepika Padukone starrer Desi Boyz, Shahid Kapoor’s Mausam, Roshan Abbas’ directorial debut Always Kabhie Kabhie, Prasanth Shah’s Chalo Dilli, Saif Ali Khan – Kareena Kapoor starrer Agent Vinod, Irffan Khan’s Bangkok Blues and five yet untitled films, one of which will be directed by Prabhu Deva.
Eros also has 10 Tamil and two Marathi films in its slate comprising Kalavadiya Pozhudugal, Nandalala, Murattu Kaalai, Uthama Puthiran, Krishnaleelai, Engeum Kadhal, Poda Podi, Avan Ivan, Yutham Sei, Ayyanar, Idea Chi Kalpana and Punha Dhakka.
In television syndication, EIML pre-sold most of its visible slate for exclusive broadcast on a range of channels including Star and Zee network. TV networks have seen a huge spike in their ratings from broadcast of premium movies. For example, 3 Idiots which was previously licensed through Eros International plc for broadcast on Sony delivered a rating of 11+ which set a new bar in the world of TV rating points. Having a strong slate of films strengthens the cable carriage deals for networks which drives substantial revenues for them.
Music and Home Entertainment
Music revenues continue to thrive, especially digital revenues. During the first half, EIML tied up with T-Series in a strategic alliance to co-distribute EIML’s forthcoming music slate. The nature of this deal underpins minimum revenues from music as and when the films get delivered and underwrite about 10-15% of the total film costs. H1 FY2011 saw Housefull and Anjaana Anjaani being released. EIML also exploits the music videos on its own digital platforms, and also has a tie up with EMI music publishing to administer its western catalogue in India. EIML also expects to monetize its library from 3D DVD format.
Ayngaran, EIML’s 51% subsidiary that specialises in Tamil films had a brilliant first half, driven by the success of Endhiran, which was released in the original Tamil version and Telugu version by Ayngaran internationally. Endhiran broke all records and grossed box office collection in excess of Rs 600 million (Rs 60 crore) overseas. EIML plans to further scale up its regional presence in the next 12-24 months.
EIML continues to license its new and catalogue content through new emerging formats such as IPTV, Video on Demand, and Pay TV, successfully through new markets.