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Eros flourishes on television syndication biz in FY2014

MUMBAI: Eros International Media is gaining momentum from its television syndication business.

The company saw its television syndication revenues grow to $80.3 million in FY2014, accounting for 34.1 per cent of total revenue. In the previous FY2013, television syndication revenue stood at $75.4 million and was 35.0 per cent of the total revenues.

Eros has benefited from its tie-up with several payers from this segment. The company signed a television syndication deal with leading broadcasters including MSM Satellite and Viacom18 Media Private Ltd, with whom the company had signed a deal during the third quarter of FY2014. Eros continues to deliver films from previously executed contracts for new and library films.

Eros entered into licensing deals for ‘Goliyon Ki Rasleela Ram-Leela’ and ‘R… Rajkumar’, both of which benefited from contractual box-office-linked bonus licence fees over and above the minimum guarantee licence fees. It also continued to syndicate television content for dubbed and subtitled versions in the international markets.

As far as film releases are concerned, Eros released 69 films in FY2014, of which 37 were in Hindi and the rest were in Tamil and other regional languages, compared to 77 films in fiscal 2013, of which 30 were Hindi-language films and the rest were in Tamil and other regional languages.

Apparent pick-up in theatrical revenues at $107.5 million accounted for 45.6 per cent of FY2014 revenues. This is in comparison with earlier fiscal’s $99 million or 46 per cent of total FY2013 revenues. Box-office showing was led by Hindi films such as ‘Raanjhanaa’, ‘Grand Masti’, ‘Goliyon Ki Rasleela Ram-Leela’, ‘R… Rajkumar’ and ‘Jai Ho’, as well as the Telugu film ‘One Nennokodine’ and international box-office successes of ‘Krrish 3’, ‘Yeh Jawaani Hai Deewani’, ‘Phata Poster Nikla Hero’ and ‘Shaadi Ke Side Effects’.

Digital and ancillary revenues accounted for 20.2 per cent of Eros’s revenue at $47.7 million in FY2014 vis-a-vis 17.4 per cent at $40.9 million in the previous fiscal.

ErosNow, the company’s unique online service offering full-length feature films and music videos, launched its ‘freemium’ model during the third fiscal quarter. ErosNow also offers third-party content on its service such as films, music videos and television shows.

Underlying the company’s plan, Eros’ MD and CEO Jyoti Deshpande said, “Our fourth-quarter and full-year results demonstrate the strength of our business and our ability to capitalise on compelling trends in the growing and underpenetrated Indian media and entertainment industry.”

Further emphasising the point, she added, “Our global distribution network allows us to take Indian films to over 50 countries dubbed and subtitled in over 25 languages as well as target the billion plus population in India. Our strong margins are driven by our robust film portfolio and its solid performance across revenue streams as well as the monetisation of our library films.”

The company expects to capitalise on its ability to reach underpenetrated domestic sector. Given a strong beginning for the current fiscal (FY2015) and the television syndication business, the company expects its revenue to be higher in the second half of FY2015, especially in the third quarter.