Press



Eros International Plc Condensed Consolidated (unaudited) Interim Financial statements for the period ended 30 September 2007

28/11/2007

November 28 2007: Eros International Plc ("Eros" or the “Company”), the London AIM listed leading Indian media and entertainment Company presents its interim results for the six months ended 30 September 2007. The Company reports a positive trading outlook and is on track to achieve full year performance in line with expectations.

The Company continues to report strong growth and profitability and remains firmly focussed on its content and distribution consolidation strategy. Since admission to AIM in July 2006, Eros has leveraged its leadership position to be at the forefront of the consolidation of the fragmented but rapidly growing $10 billion Indian entertainment industry which is forecast to grow to over $25 billion by 2011 according to PwC*.

* Source: The Indian Entertainment Sector 2006 by PwC

Financial Highlights for the six months ended 30 September 2007:

  • Turnover increased by 58.7% to US$34.6m (2006: US$21.8m)
  • EBITDA increased by 85.1% to US$24.5m (2006: US$13.2m)
  • Profit before tax increased by 75.9% to US$13.6m (2006: US$7.7m)
  • Cash flow generated from operating activities is US$ 15.4 m (2006 US$ 11.1 m)
  • Adjusted** basic earnings per share 11.46 cents per share up by 55.7% (2006: 7.36 cents)

** Adjusted earnings per share is prepared on the basis that all the group formation and IPO share issues took effect on 31st March 2006 : Note 7 provides a detailed calculation

Operating Highlights for the six months ended 30 September 2007:

  • Market Share Increase – From an aggregate market share of 32% between 1998-2007, Eros’s market share in the period January-November 2007 increased to 47%. (Source UK EDI Nielsen).
  • Indian cinema - Strong growth in domestic box office with 5 out of Top 10 box office grossers in 2007 being Eros releases.
  • Television - Sony deal concluded in March 2007. Full visibility of TV syndication revenues.
  • New Media – Significant new deals with Sky Anytime, Joost, NME, Vudu, Mauritius telecom & Singnet apart from ongoing revenues from Comcast and Mauj Telecom.
  • International Markets – continued to open new dubbed markets and expand distribution network with mainstream cinema chains and DVD retailers.
  • Joint ventures & Acquisitions – 51% acquisition of Ayngaran business to enter the Tamil Film market, established Eyeqube Studios in collaboration with Hollywood visual effects talent Charles Darby, signed deal to co-produce a slate of films with Sony Pictures.
  • Future content pipeline secured – Shift to global releases with 100% visibility for 2008-09 releases, 70% for 2009-10 and 40% for 2010-11.

Kishore Lulla, Chairman and CEO, Eros International, said:

"Eros has continued to deliver on its strategy of consolidating the Indian entertainment market, expanding its audience reach by leveraging its local distribution network. We are delighted with our continuing momentum and our ability to deliver growth and profits while maintaining margins. Our rich content library and unrivalled global distribution infrastructure separates us from other players in the space. Our business is still at an inflection point and we are confident that we have the strategy as well as management to take advantage of the immense opportunity in front of us. We remain confident of a successful outcome to the current financial year."

Enquiries:

Eros +44 (0)20 8963 8700
Kishore Lulla - Chairman & CEO
Jyoti Deshpande - COO & Commercial Director
Andrew Heffernan - CFO

Brunswick
Jonathan Glass
Anisha Patel		 +44 (0)20 7404 5959
   
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Tom Price
Jeremy Ellis		 +44 (020) 7071 4300

View the full press release (PDF format).

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