Eros International has reported digital and ancillary revenues of $20.8 million for the quarter ended March 2016, down 6.3% from $22.8 million in the preceding quarter and up 11.22% from the same quarter last year. For the full year, digital and ancillary revenues stood at $63.9 million up 6.7%.
Eros Now, its video streaming service, now has 44 million registered users with a majority of its users in India. The company added that 1% of its user base are paid subscribers and that it expects this to increase to 1 million by the end of the next fiscal.
As part of its digital strategy, Eros Now has added short originals called “Black and White” which has interviews with leading talent from India’s film industry. It also has three new shows in its pipeline called Smoke, Lost and Siachen (shot on mobile phone cameras).
Eros’s digital businesses also includes YouTube channel, 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.
Financials: Overall revenues decreased 26.4% to $65.1 million for the quarter, from $88.5 million revenues in the same quarter last year. Net profit stood at $959,000 for the quarter, down from $19.36 million in the same quarter last year.
Theatrical revenues: Theatrical revenues decreased to $17.9 million for the quarter, from $44 million revenues in the same quarter last year. Note that these revenues are significantly dependent on number of film releases in a quarter. The company did not release any high budget movies but released six medium budget movies and six low budget movies. Total number of films released in the year stood at 63 compared to 65 in the same period last year.
The segment accounted for 27.45% of Eros International’s quarterly revenues, down significantly from 42.7% contribution in the preceding quarter.
Television syndication revenues: The television syndication revenues were at $26.5 million for the quarter, up marginally from $25.8 million in the same quarter last year. The segment accounted for 40.6% of the Eros International’s quarterly revenues.
Regional segmentation of revenues
– India: For the full year, revenues by customer location in India increased 45.4% to $159.million for the quarter, from $110 million in the last year.
– North America: Revenue by customer location in North America increased to $14.6 million for the full year, from $10 million last year.
– Europe: Full year revenue by customer location in Europe increased 15.9% to $34.2 million compared to $29.5 million last year.
– Last month, Eros Now allowed its premium subscribers to download videos offline for free on Android devices; iOS users will have to wait.
– Eros launched its streaming platform on Apple TV and Amazon Fire TV.
– ErosNow forayed into Malaysia through partnerships with two local telco; Maxis Berhad and U Mobile. Through this deal, Eros’ app will be available to prepaid and postpaid users of both telcos for RM10 (~$2.6) per month.
– -In January Idea Cellular entered into a platform and content deal with ErosNow, allowing Idea 4G customers to watch movies, originals and short form videos at Rs 49 per month, a discount from the regular price of Rs 99 per month.
Download: Financial results