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Eros Q1 net dips 18% amid cut in movie slate

MUMBAI: Film entertainment firm Eros International Media has reported 18% fall in net profit in the fiscal first quarter amid revenue drop and a cut in high-budget movie releases.

The company’s net profit (after minority) stood at Rs 48.3 crore compared to Rs 58.9 crore a year ago.

Revenue slumped 33.4% to Rs 273.4 crore in the quarter ended 30 June 2017 compared to Rs 410.4 crore in the prior year.

Eros’ movie slate in the quarter trimmed drastically. The company released one high-budget movie during the quarter compared to three in the year-ago period. Only one medium budget and three small budget movies released in the quarter. A year ago, Eros had released two medium budget and nine small budget films.

Operational Overview

  • Theatrical revenues in Q1FY2018 were driven by releases of Sarkar 3, Oru Kidayin Karunai Manu (Tamil), Tujha Tu Majha Mi (Marathi), Aake (Kannada) and Posto (Bengali)
  • Company released a total of 5 films in Q1FY2018
  • Revenues from Television & Others, Overseas segment and catalogue contribution from the Company’s extensive film library contributed to the financial performance
    • Diversified revenue mix
      • During Q1 FY2018, Theatrical Revenues contributed – 41.0%, Overseas Revenues – 15.9% and Television & Others – 43.1% as a percentage of Income from Operations
    • Hindi & Regional film release strategy
      • Sarkar 3 – a high‐budget Hindi film released during the quarter. The satellite rights for the film were pre‐sold to ZEE TV prior to its theatrical release
      • Across the regional film category, Oru Kidayin Karunai Manu (Tamil), Tujha Tu Majha Mi (Marathi), Aake (Kannada) and Posto (Bengali) were released in the quarter
      • Munna Michael, a medium‐budget film, marked an encouraging start to Q2 FY18, with the satellite rights being pre‐sold to Zee TV prior to its theatrical release.

Said Eros International Media executive vice chairman & MD Sunil Lulla, “We are scaling content co‐production and ownership in fiscal 2018 with greater emphasis on the coproduction model. The launch of Trinity Pictures, our film label for franchise films and investments in our joint venture Colour Yellow Productions are concrete steps taken in this direction. Trinity Writers Room has already completed development of 20 franchises which are in various stages of development and production.

Eros has a compelling slate for FY 2018, including films such as Trinity Pictures Sniff – I Spy, Shubh Mangal Savdhan, Mukkebaz, Chanda Mama Door Ke, Bhavesh Joshi, Happy Bhaag Jayegi 2 and Soorma to name a few Hindi films. In addition, Eros has a number of Tamil, Telugu, Punjabi, Bengali, Marathi and Malayalam films that we look forward to releasing during the year.”

Major upcoming releases