Eros International has reported digital & ancillary revenues of $9.1 million for the quarter ended September 30, 2014, registering a minor 2.2% dip from $9.3 million in the same quarter last year. Note the company doesn’t disclose revenues separately for its digital & ancillary segments, both of which include components of what might be defined as digital businesses.
The segment accounted for 18.2% of Eros International’s quarterly revenues that was at $49.9 million for the quarter, up 13.4% year-on-year (YoY). In comparison, the segment had accounted for 21.1% of Eros International’s revenues in the same quarter last year.
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 sales as well as rights to Radio & TV channels and royalties from public performances. They also include revenues from in-flight entertainment.
New ErosNow mobile app: While the company didn’t disclose any operational details on how ErosNow is performing, Eros International CEO & managing director Jyoti Deshpande mentions that they plan to launch a new mobile app for ErosNow by the end of this year and they expect the TechZone acquisition will help them “galvanize” their mobile monetization strategy. However, she didn’t disclose any specific details on this.
TechZone acquisition: Eros mentions that it has made an advance of $2.5 million to TechZone as working capital ahead of the completion of transaction. The transaction is expected to be completed before March 31, 2015. Eros had signed the termsheet to acquire a controlling stake in Techzone (Universal Power Systems Private Limited) in June this year.
Theatrical revenues: Theatrical revenues increased to $17.2 million for the quarter, from $15.1 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 company had released one high budget movie, three medium budget movies and 17 low budget movies during the quarter as against five medium budget movies, five low budget movies and no high budget movie in the same quarter last year.
The segment however accounted for 34.5% of Eros International’s quarterly revenues, up from 34.3% contribution in the same quarter last year.
Television syndication revenues: The television syndication revenues was at $23.6 million for the quarter, up from $19.6 million in the same quarter last year. The segment accounted for 47.3% of the Eros International’s quarterly revenues, as compared to 44.5% contribution in the same quarter last year.
Regional segmentation of revenues
– India: Revenues by customer location in India declined by 18% to $17.3 million for the quarter, from $21.1 million in the same quarter last year due to the change in mix of films and a number of medium budget releases were distributed outside India only.
– North America: Revenue by customer location in North America increased by 77.8% to $4.8 million for the quarter, from $2.7 million in the same quarter last year due to change in film mix in both the periods.
– Europe: Revenue by customer location in Europe remained flat at $7.4 million for the quarter.
– Rest Of The World: Revenue from the rest of the world increased by 59.4% to $20.4 million for the quarter, from $12.8 million revenues in the same quarter last year. Eros attributed this growth to the strong theatrical and catalogue sales driven by the mix of films and its film library.
The overall revenues increased by 13.4% to $49.9 million for the quarter, from $44 million revenues in the same quarter last year. The net profit also grew by 53.6% to $4.3 million for the quarter, from $2.8 million in the same quarter last year.
£50M Retail bond: Eros also mentions that it completed a £50 million Retail Bond offering in October 2014, in order to diversify and restructure its debt. This bond matures in 2021.
Download – Press release & Financials