iWorld

ErosNow targets subscriber base of 5 cr; fuels Eros International growth

It closed Q3 2019 with a paying subscriber base of 15.9 million.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/02/23/Eros-now.jpg?itok=a98JDHNR

BENGALURU: Eros International Plc (Eros International) reported its strongest quarterly performance ever over two year for the three months ended 31 December 2018 (Q3 2019). The company in its investor release says that it closed Q3 2019 with a paying subscriber base of 15.9 million or 1.59 crore. The company says that it is targeting 50 million (5 crore) paying subscribers in the next three years.

“Our digital & ancillary business generated $35.6 million in revenue, a growth of 31.4 percent over last quarter, and represented 46.4 percent of our total revenue this quarter – the largest proportion ever. Eros Now achieved 15.9 million paid subscribers this quarter, which represents growth of 218 percent year-over-year, and registered users grew to more than 142 million, (14.2 crore) a 78 percent increase versus the prior year period.

Eros International is currently at an inflection point transforming itself into a holistic content and digital ecosystem. As we continue to undergo this shift we expect the skew of digital and ancilliary revenues to increase relative to our traditional theatrical and TV syndication businesses. The shift to digital will increase the visibility of our earnings as we move towards a more annuity-type business model – higher quality of earnings and more sustainable growth.” Eros International is listed in the New York Stock Exchange.

To that extent the company says that it has built its digital catalogue on the Eros Now Platform to over 12,000 movies across 10 Indian languages and counting.

The company is also looking at music to help ramp up revenues. The music ecosystem in India has been growing exponentially over the past few years. In India there are currently over 100 million (10 crore) digital audio streaming users, a number which is growing rapidly says Eros International. Music is integral to its films and its premium content offering to consumers claims Eros. Film music is often marketed and monetised separate from the underlying film, both before and after release. The company says that its deep music library comprises a key component to our unique ErosNow offering, being the only app combining both video and music entertainment. Eros International feels that its  music content also represents significant value in the form of intellectual property rights, the value of which is set to grow over time.

Company speak

Eros executive chairman and CEO Kishore Lulla commented, “We grew quarterly revenue 21.0 percent over last quarter and expanded our Adjusted EBITDA margin to 40.9 percent. Our foresight into creating a diversified slate, both linguistically and by budget, helped deliver strong television sales as well as theatrical and digital results. Our ErosNow OTT platform has continued to grow rapidly and reached 15.9 million paid monthly subscribers as of December 31, 2018, a 22.3 percent increase over last quarter. We have achieved our previously announced year-end target of 16 million paying subscribers in just nine months. This tremendous achievement in a relatively short period of time demonstrates that we are well on our way to achieving 50 million (5 crore) paying subscribers in the next three years. Our balance sheet remains conservative and we are well-capitalised, with net debt of $159.1 million, a decrease versus the second quarter of FY 2019."

Let us look at the numbers reported by Eros International as mentioned in its earnings release.

Eros reported gross revenue for three and nine months ended 31 December 2018, respectively are $86.6 million and $225.6 million compared to $67.5 million and $193.7 million for the three and nine months ended 31 December 2017, respectively. Gross revenue for the three and nine months ended 31 December 2018, respectively, have been adjusted towards significant financing component on account of adoption of new accounting pronouncements says Eros International.

Eros reported revenue for three and nine months ended 31 December 2018 are $76.7 million and $200.4 million, respectively, compared to $65.2 million and $189.3 million for the three and nine months ended 31 December 2017, respectively.

For the three months ended 31 December 2018, the aggregate revenues from digital and ancillary increased by 55.5 percent to $35.6 million from $22.9 million for the three months ended 31 December 2017 and in the nine months ended 31 December 2018, revenue increased by 41.0 percent to $89.4 million, compared to $63.4 million for the nine months ended 31 December 2017. The increase in revenue is primarily on account of contribution from catalogue revenues and digital business.

Revenue from India increased by 27.4 percent to $28.4 million in the three months ended 31 December 2018, compared to $22.3 million in the three months ended 31 December 2018 and in the nine months ended 31 December 2018, revenue from India increased by 3.8 percent to $75.8 million, compared to $73.0 million for the nine months ended 31 December 2018. The variation is due to mix of films.

Revenue from Europe increased by 141.2 percent to $12.3 million in the three months ended 31 December 2018, compared to $5.1 million in the three months ended 31 December 2017 and in the nine months ended 31 December 2018, revenue from Europe increased by 118.8 percent to $43.1 million, compared to $19.7 million for the nine months ended 31 December 2017. This was due to higher contribution from the monetisation of catalogue films.

Revenue from North America increased by 700.0 percent to $0.8 million in the three months ended 31 December 2018, compared to $0.1 million in the three months ended 31 December 2017 and in the nine months ended 31 December 2018, revenue from North America increased by 114.3 percent to $1.5 million, compared to $0.7 million for the nine months ended 31 December 2017.

Revenue from the rest of the world decreased by 6.6 percent to $35.2 million in the three months ended 31 December 2018, compared to $37.7 million in the three months ended 31 December 2017 and in the nine months ended 31 December 2018, revenue from rest of world decreased by 16.6 percent to $80.0 million, compared to $95.9 million for the nine months ended 31 December 2017. This was due to lower catalogue sales during the period.

For the three months ended 31 December 2018, adjusted EBITDA increased by 21.2 percent to $31.4 million compared to $25.9 million in the three months ended 31 December 2017.

The increase in adjusted EBITDA was on account strong catalogue sales which was partially offset by increases in amortisation, marketing, advertising and distribution costs for three months ended 31 December 2018.

In the nine months ended 31 December 2018, adjusted EBITDA increased by 39.0 percent to $81.9 million, compared to $58.9 million for the nine months ended 31 December 2017.

Releases reported by Eros in its earnings release

In the three months ended December 31, 2018, the Eros film slate was comprised of 25 films, of which two were medium budget and 23 were low budget as compared to four films in the three months ended December 31, 2017, of which all were low budget films. In addition, Eros Now released three original series titled Smoke, Date Gone Wrong and Paisa Fek Tamasha Dekh during the three months ended December 31, 2018.

In the three months ended December 31, 2018, the Company’s slate of 25 films comprised of six Hindi films, 17 regional films and two Tamil/Telugu as compared to the same period last year where its slate of four films comprised three Hindi films and one regional film.

In the nine months ended December 31, 2018, the Eros film slate was comprised of 56 films of which seven were medium budget and 49 were low budget films as compared to 16 films in the nine months ended December 31, 2017, of which one film was high budget, three were medium budget and twelve were low budget. In addition, Eros Now released four original series titled Side Hero, Smoke, Date Gone Wrong and Paisa Fek Tamasha Dekh during the nine months ended December 31, 2018

In the nine months ended December 31, 2018, the Company’s slate of 56 films comprised of 14 Hindi films, five Tamil/Telugu film and 37 regional films as compared to the same period last year where its slate of 16 films comprised of eight Hindi films, one Tamil/Telugu films and seven regional films.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/20/pockr.jpg?itok=MEsGxhkQ
Pocket Aces partners up with Tinder & Pure Me for Firsts Season 3

MUMBAI: Pocket Aces is back with a new season of the hit Instagram series, Firsts. Presented by Tinder and PureMe, Firsts Season 3 explores a same-sex romantic relationship between two young women, who match on the dating app and experience an exhilarating journey of understanding love, life, and...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/20/alt.jpg?itok=4-Z8EJ9a
ALTBalaji to conduct Writers' Lab, a YouTube online masterclass series to inspire & educate aspiring students of cinema!

To bridge the gap between the prolific writers of the entertainment industry and aspiring students of cinema, ALTBalaji – one of the country’s leading OTT platforms has come up with a thoughtful and unique initiative – ‘The Writers' Lab’. Proposed to be an online masterclass where renowned writers...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/19/tring.jpg?itok=ZEWy5HC5
ALTBalaji acquires 17.5 per cent stake in Tring

KOLKATA: ALTBalaji has acquired 17.5 per cent stake in the online celebrity digital engagement platform, Tring. With this investment, Tring’s valuation rose to about Rs 100 crore in the short period since its inception earlier this year. The celebrity shout-out and engagement platform was started...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/19/voot.jpg?itok=Extcfv46
Voot strengthens content portfolio with Shemaro’s linear channels

KOLKATA: Voot has announced a strategic partnership with India’s leading content powerhouse Shemaroo Entertainment Ltd. to provide its live linear channels Shemaroo TV and Shemaroo MarathiBana to the millions of users of the platform.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/19/game.jpg?itok=eOAgafnb
GEMS 2020: Indie game developers continue to rise and shine!

When compared to the gaming scene in the U.S. and Europe, India's indie game development space is taking baby steps. But indie creators are making headway and getting noticed.

iWorld Gaming
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/16/tran.jpg?itok=lnZyw92K
CapeTitans Games on bridging the gaps in game creation

The online gaming ecosystem is evolving rapidly in India. While many aspirant game developers are trying to make their mark on the industry, there is a gap when it comes to conceptualizing a game on the drawing board and selling it in the market. CapeTitans Games is trying to bridge that schism.

iWorld Gaming
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/15/ott.jpg?itok=N3QsmKbU
SC seeks Centre’s response on regulating OTT platforms

KOLKATA: It seems that when it comes to self-regulation, OTTs have a tough long road ahead, as the supreme court has sought the centre's response on a public interest litigation (PIL) for regulating these platforms by an autonomous body.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/15/voot.jpg?itok=wsfAFtti
Catch the latest episodes of the new socially-distanced Shark Tank – Season 12 in India on the same day as the US, exclusively on Voot Select

“The road to riches is never straight and narrow. It can be riddled with financial land mines.”

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/15/st.jpg?itok=1D_kWUNF
GEMS: Psyche of Indian gamer

With a spurt in consumption during the lockdown, gaming is projected to only grow further. Although the gamers are majorly young and male till now, the users are gradually emerging across demographics.

iWorld Gaming

Sign up for our Newsletter

subscribe for latest stories

* indicates required