Mumbai: Eros International has announced that the company is on track to achieve full year performance in line with its expectations for the year ended 31 March 2008.
The company said that it continued to record strong growth in revenues from the group’s core activities of cinema distribution, television syndication and digital distribution and has also seen early revenues from its Tamil subsidiary Ayngaran, which it acquired during the year.
Since admission to AIM in July 2006, Eros has taken a lead in the consolidation of the fast growing, but fragmented $10 billion Indian entertainment sector by:
·signing long term deals with talent, through content tie ups with productions, co-productions, output deals and acquisitions.
·expanding its extensive global distribution network particularly within India and other emerging markets.
· pioneering digital new media opportunities with leading partners around the world.
·continuing to monetise its valuable library of over 1,900 films through syndication to television channels along with its slate of over 30 new films released on average in a year.
Additionally, the company also acquired a minority interest in the B4U Movies and Music channels. The shares that were held in personal capacity by Eros International chairman and CEO Kishore Lulla have now been transferred to the company.
The purchase price for the option shares in B4U is $10,815,017, representing a 10% premium to the par value of the shares (plus accrued interest as at the date of the exercise), and is being satisfied by the issue of 1,783,698 ordinary shares of 10p each based on the mid market price of 307.5p on 10 April 2008.
The consideration is being paid to Beech Investments Limited, a company under the same common ownership as Acacia Investments. The issue of the new ordinary shares is conditional on their admission to trading on AIM. The company has applied to AIM for admission of the new ordinary shares, which is expected to become effective on 18 April 2008.
Lulla said, "We have successfully carried out the initial phase of consolidation to emerge as an integrated studio controlling production and distribution. The business is performing well and we are confident of meeting full year targets. 2008-09 should continue to be a year of growth for Eros as we leverage our competitive advantage and benefit from the increasing revenues from box office, television and new media."