Blog Post

Earnings: New Media Accounts For 11 Percent Of Eros’ Revenues For H1 2007

London AIM listed Eros International has reported a turnover of $34.6 million for the six months ending 30th September 2007 (H1 2007), up 58.7 percent from $21.8 million for the same period in 2006. 44 percent of the revenues were from India and New Media accounted for 11 percent of the company’s revenues – around $3.8 million. In H1 2006, new media had accounted for 9 percent – around $1.96 million. EBITDA has increased by 85.1 percent to $24.5 million, while earnings per share (EPS) were at 11.46 cents per share, up from 7.36 cents for the same period in 2006.

New Media Deals: Eros claims to have has benefited from a minimum guarantees from Mauj Telecom, though we’re not sure if Mauj has benefited from Eros’ content. Eros has signed other minimum guarantee deals: with Mauritius Telecom and Singnet for Video on Demand, and with New Medium Enterprise for bundling Eros content with NMEs High Definition DVD Players. Eros also signed a “high margin” revenue share deal with Joost to launch an advertising driven Bollywood channel which could be extended to a subscription model. The VoD deal with Comcast (NSDQ: CMCSA) in the US has crossed 10,000 subscribers, and another deal has been signed with Vudu. Eros’ service on Sky Anytime went live in September.

As per the earnings report, Home Entertainment revenues for the company doubled from H106, and the market is shifting from VCDs to DVDs. Eros has acquired 146 Hollywood titles for release in India. In H1 2007, the company released 11 films in India, of which 8 were global releases, as opposed to 2006 where the company had 4 releases in the entire year. Eros also established Eyeqube Studios for visual effects with Charles Darby, and entered into a JV agreement for Tamil films with Ayngaran.
Financials and Release (pdf)