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Eros Q4 net down 34% due to fewer movie releases
MUMBAI: Film production and distribution company Eros International’s fiscal fourth quarter net profit has seen a 34.1% drop at Rs 33.7 crore against Rs 51.1 crore recorded in the corresponding quarter of the previous fiscal year due to fewer movie releases.
EBIT grew 23% at Rs 66 crore against Rs 53.8 crore in the same quarter of the previous fiscal year.
Revenue for the quarter was down 29% at Rs 210.4 crore as against Rs 296.9 crore in Q4FY16.
During the quarter, the company released a total of five films including one medium- and four low-budget films compared to six medium- and six low-budget films in Q4 FY16.
Theatrical revenues in Q4 FY2017 included ‘Baghtos Kay Mujra Kar’ (Marathi), ‘C/O. Saira Banu’ (Malayalam), ‘Engitta Modhathe’ (Tamil), ‘Bibaho Diaries’ (Bengali), ‘Yaman’ (Tamil) and catalogue revenues. TV and other segments included satellite sales for ‘Rock On 2’ and catalogue sales contribution.
During the quarter, the company signed a three-film television syndication multi‐film deal with Zee, which included Ram Gopal Varma’s ‘Sarkar 3’, starring Amitabh Bachchan; Tiger Shroff and Sabbir Khan’s action‐packed musical ‘Munna Michael’; and quirky romantic comedy ‘Shubh Mangal Savdhaan’, starring Ayushmann Khurrana and Bhumi Pednekar.
The net profit for the full fiscal year grew 6% to Rs 257.5 crore from Rs 238.7 crore in the previous fiscal year. EBIT was up at 6% to Rs 376.8 crore against Rs 354.9 crore. Revenue for FY17 dropped 11% to Rs 1445.3 crore from Rs 1625.7 crore in FY16.
The company released a total of 44 films including five high-budget, 10 medium-budget and 29 low-budget films in FY2017 compared to a total of 63 films including six high-budget, 16 medium-budget and 41 low-budget films during FY2016.
During the fiscal year, theatrical revenues contributed 42.5%, overseas revenues 26.4%, and television & others 31.1% as a percentage of income from operations.
Commenting on the performance for Q4 and FY2017, Eros International Media MD Sunil Lulla said, “It is a matter of satisfaction that we have ended the fiscal year on a steady note despite the impact of demonetisation on theatrical revenues in H2 FY2017. This performance has been enabled by Eros’ consistent pre-sales strategy, which helps us de-risk our business, effective monetisation of our 2000+ films library, and a strong regional film strategy during the year.
“The Indian film sector has attracted a lot of interest from international majors to build their film libraries in the recent past and as a result has driven up value of the Indian content. Eros’ key asset—a market-leading content library—is a major beneficiary of this trend, which is only likely to become stronger. At the same time, in order to effectively manage the cost of our future content, the company has taken active steps to develop its own intellectual properties over the past two years. The launch of Trinity Pictures, our film label for franchise films, investments in our joint venture Colour Yellow Productions, and identifying the right films to sequel from our film library are concrete steps taken in this direction. We are excited about these developments and are looking forward to FY2018, which will see the fruition of this strategy in a significant manner.”