Eros International has reported digital and ancillary revenues of $10.8 million for the quarter ended June 30, 2014, registering a significant 54.3% increase from $7 million revenues in the same quarter last year. As always, the company however hasn’t disclosed revenues separately for the two segments, both of which include components of what might be defined as digital businesses.
The segment accounted for 23.8% of Eros International’s quarterly revenues that was at $45.4 million for the quarter, up 10.7% year-on-year (YoY). In comparison, the segment had accounted for 17.1% of Eros International’s revenues in the same quarter last year.
Note that Eros’s digital businesses include its video on demand service Eros Now, its YouTube channel that recently claimed to have crossed over 2 billion video views in aggregate, and more significantly, it’s distribution via cable based VoD services called “Bollywood Hits On Demand” with Cox, Rogers, Cablevision and Time Warner,” apart from services in the UK and Middle East. It’s ancillary businesses include digital music revenues (from iTunes, Spotify, Napster, Rdio), and physical CD’s as well as rights to Radio & TV channels and royalties from public performances. They also include revenues from In-flight entertainment.
TechZone acquisition: During the quarter, Eros International had acquired a controlling stake in the mobile value added service provider Techzone (Universal Power Systems Private Limited) for an undisclosed amount.
Eros CEO and Managing director Jyoti Deshpande had then said that Techzone’s billing integration and distribution across major telecom operators will complement its existing online movie streaming service ErosNow.
Eros Now Content Tie-ups: Earlier this week, Eros also acquired worldwide online rights of popular Zee TV shows. The company had told Medianama that all original Zee TV shows will be available on Eros Now with a delay of 48 hours for a period of 13 months. Some of the shows that were offered through this deal include Pavitra Rishta, Fear Files, Ek Mutti Aasmaan, Sapne Suhane Ladakpan Ke, Jodha Akbar, Do Bandhe Ek Dori Se, Kumkum Bhagya, Qubool Hai, Aur Pyar Ho Gaya, and Armano ki Doli among others.
Theatrical revenues: Theatrical revenues declined to $19.1 million for the quarter, from $21.6 million revenues in the same quarter last year. However, note that these revenues are significantly dependent on number of film releases in a quarter, so it’s perhaps not right to do a quarter on quarter comparison for the company. The segment accounted for 42.1% of Eros International’s quarterly revenues, down from 52.7% contribution in the same quarter last year.
Eros’s follow-on offering at NYSE: In July this year, Eros Plc also completed its follow-on equity offering of 6.8 million A ordinary shares (6,787,445 A ordinary shares) at an offer price of $14.50 per share. thereby raising around $92 million in net proceeds to the company. The company however had earlier mentioned (pdf) that it will not receive any proceeds from the sale of these shares.
Television syndication revenues: The television syndication revenues was at $15.5 million for the quarter, up from $12.4 million in the same quarter last year. The segment accounted for 34.1% of the Eros International’s quarterly revenues, as compared to 30.2% contribution in the same quarter last year.
Regional segmentation of revenues
– North America: Revenue by customer location in North America declined by 54.5% to $1.5 million for the quarter, from $3.3 million in the same quarter last year due to change in film mix in both the periods.
– India: Revenues by customer location in India increased by 11.7% to $24.9 million for the quarter, from $22.3 million in the same quarter last year. The company attributed this growth to increase in revenues from comparable new releases that was offset by revenue reduction due to lower currency translation.
– Europe: Revenue increased by 252.4% to $7.4 million for the quarter, from $2.1 million in the same quarter last year. This growth was due to overall revenue increase from its catalogue and production services offset by lower theatrical revenues from new releases.
– Rest Of The World: Revenue from the rest of the world declined by 12.8% to $11.6 million for the quarter, from $13.3 million revenues in the same quarter last year. This decline was due to reduction in the company’s television syndication and digital revenues in the region.
The overall revenues increased by 10.7% to $45.4 million for the quarter, from $41 million revenues in the same quarter last year. The company however posted a loss of $2.6 million for the quarter, as compared to a profit of $8.8 million in the same quarter last year.
Read – Press Release