Eros Q4FY16 revenues down 41%, full year revenues up 11%

Mumbai: Eros International has announced its consolidated financial results for the quarter and full year ended March 31, 2016 (Q4 & FY2016).

The revenue for FY16 is at Rs. 16,036 mn, against Rs. 14,410 mn in FY15; up 11%. The PAT at Rs. 2141 mn, against Rs. 2,471 mn; down 13% and EBIT at Rs. 3,375 mn, against Rs. 3,616 mn; down 7%.

The revenue for Q4FY16 stands at Rs. 2,747 mn, against Rs. 4,656 mn in Q4FY15; down 41%. The PAT stands at Rs. 327 mn, against Rs. 517 mn; down 37% and EBIT stands at Rs.345 mn, against Rs. 829 mn; down 58%.

Operational Highlights:

•  In line with the portfolio approach, the Company released 12 films during the quarter and a total of 63 films in FY2016
• In Q4 FY16, 6 medium & 6 low budget films were released as against 1 high budget, 4 medium & 17 low budget movies in Q4 FY15
• Theatrical revenues during the quarter were driven by releases such as Dictator (Telugu), Rajini Murugan (Tamil), Guru (Marathi), Sanam Teri Kasam (Hindi), Aligarh (Hindi), Phuntroo (Marathi), amongst other releases
• Eros India participation in digital growth and upside
  • Based on a detailed transfer pricing study by a Big 4 Accounting firm, the following changes will be made to the existing relationship agreement between EIML and Eros International Plc.
  • EIML will transfer the overseas rights including global digital media rights to Eros International Plc, or it subsidiaries at an amount equal to 40% of the Production Cost of each Film with an additional mark-up of 20%.
  • So out of every Rs 100 invested in content, EIML or its subsidiaries will de-risk itself to the extent of Rs 48 as compared to the Rs 39 from the previous arrangement.
  • Additionally, Eros India group will hold an equity stake of 10-15% of the global digital business structure. This will allow it to participate in the long term value creation of the ErosNow business, any future value enhancement, stake divestment, IPO etc.
  • These arrangements are now board-approved and will go through regulatory and other compliances to be implemented.
• Revenues from the satellite segment further contributed to the financial performance during the quarter

 Commenting on the performance for Q4 & FY2016, Mr. Sunil Lulla, Managing Director of Eros International Media Ltd. said,“Fiscal 2016 clearly proved to be one of the best year for our films at the Box Office demonstrating the quality and robustness of our content green-lighting strategy, a strong competitive edge for Eros. This is possible as over the years, we have built scale and expertise with the help of an experienced management team which has constantly set new benchmarks in the industry. Continuing this momentum, we had an excellent start to FY17 with Sardaar Gabbar Singh in Telegu, ‘Ki & Ka’ in Hindi and 24 in Tamil delivering splendid performances  and together with ‘Housefull 3’ scheduled to open next week, we are looking at a blockbuster first quarter.

 We have a very exciting film slate for the upcoming quarters, which include films such as ‘Rock On 2’, ’ ‘Dishoom’, ‘Baar Baar Deko’, ‘Shivaay’, Banjo, Singham 3 together with a diversified slate of other regional releases. On the whole, FY 2017  will be seeing an exciting movie repertoire of over 65 content-driven Eros films in Hindi and other regional languages, making it the biggest future slate by any studio in India. The slate would also be aided by compelling  films from our franchise production arm, Trinity Pictures. To further demonstrate our portfolio and de-risking strategy, I am happy to announce that a substantial part of the above mentioned slate is already pre-sold for satellite rights with the major television networks.

 I am happy to report that we ended the year with record revenues of Rs. 16,036mn and healthy profitability. Further, we generated Rs. 3,000 mn free cash flow in FY16 and strengthened our balance sheet by bringing about working capital efficiencies. We are confident that we will continue to maintain our market leadership position in the years to come.”added Mr. Lulla

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