Eros Q3 net profit down, operating rev up
MUMBAI: Eros International Media’s consolidated net profit for the quarter ended 31st December has dropped 7.4% to Rs 62.19 crore as against Rs 67.16 crore in the corresponding quarter of the previous fiscal.
Adjusted EBITA stood at Rs 136.6 crore in Q3 FY19 as compared to Rs 110 crore Q3 FY18, a growth of 24.2%. The income from operations jumped 62.1% to Rs 332.4 crore from the corresponding quarter which was at Rs 205 crore.
Theatrical Revenues contributed 24.6% as a percentage of income from operations followed by overseas revenues (23%) and television & others (52.4%).
Eros remains focused on its film pipeline, with 40 – 50 films across genres. Performance during the period was driven by the theatrical releases of Tumbbad, Boyz 2 (Marathi), Amar Akbar Antony (Telugu), Savyasachi (Telugu), Mumbai Pune Mumbai 3 (Marathi) amongst others.
The overseas releases of Andhadhun (Hindi), Helicopter Eela (Hindi), Pareshaan Parinda (Hindi) and Namaste England (Hindi) also contributed to the overall performance, reinforcing the portfolio and film mix strategy.
The total income growth was driven by a healthy mix of release slate: Eros released 56 films (7 medium budget, 49 small budget) & 4 Digital Series in 9MFY2019 as compared to 16 films (1 high budget, 3 medium budget, and 12 small budget films) in 9MFY2018
The margin expansion was driven by content-driven films, strong pre-sales strategy, and catalogue monetisation. Contribution from the television and others segment stood healthy at 52.4%, including satellite sales of Amar Akbar Antony (Telugu) and Savyasachi (Telugu) and catalogue sales.
Eros International’s Marathi Superhit Boyz 2 shines at the box office collecting INR 130 million within 10 days of release.
In this quarter, the Company released 3 original series – Smoke, Date Gone Wrong and Paisa Fek Tamasha Dekh on Eros Now, parent Eros International Plc’s OTT platform. All 3 original series have been widely appreciated by the audiences, there are a host of other new launches including short-form web series, short films, as well as digital films on Eros Now enhancing its registered users to 128 million and 13m paying subscribers worldwide (as on September 2018)
Commenting on the performance, Eros International Media Executive Vice Chairman & MD Sunil Lulla said, “We are pleased to announce strong results during the quarter, delivering 62.1% Total Income growth and consistent profits. Our focused approach of choosing a balanced slate spanning genres, languages, and budgets, continues to deliver positive results. During the quarter, we released a total of 25 films & 3 Digital series, comprising of an interesting mix of genres ranging from comedy to horror and crime thriller, which received encouraging responses. The theatrical slate included the critically acclaimed ‘Tumbbad’, ‘Boyz 2’ (Marathi), ‘Mumbai Pune Mumbai 3 (Marathi)’ and our twin Telugu releases ‘Amar Akbar Anthony’ and ‘Savyasachi’ amongst others. A strong slate of overseas releases of ‘Andhadhun’ (Hindi), ‘Helicopter Eela’ (Hindi) and ‘Namaste England’ (Hindi) further supported performance during the quarter.
In this quarter, we released three original web series – the crime thriller ‘Smoke’, the entertaining and quirky ‘Date Gone Wrong’ and the fun-series ‘Paisa Fek Tamasha Dekh’ on ErosNow, which received positive audience ratings and were equally applauded by the critics. We are committed to bringing fresh and engaging digital content targeted primarily to the millennial audiences on the ErosNow platform and have an exciting pipeline of original content lined up for the upcoming quarters. We are confident with our exciting content offering the pace of subscriber addition for ErosNow will further accelerate within the fast-growing millennial and post-millennial audiences, while spurring the growth and penetration in other cities for Eros Now.”
He further added, “As we look ahead, we have a compelling film slate which includes Saif Ali Khan starrer ‘Kaptan’, the trilingual remake of ‘Haathi Mere Saathi’, ‘Kaamiyab’, ‘Ticket to Bollywood’, and a host of regional releases. In addition, we have a host of remarkable originals such as ‘Dashavtar’, ‘Ponnyin Selvan’, ‘Flesh’, ‘Bhumi’ coming up on ErosNow, that we look forward to releasing in the upcoming quarters.”