PAT margins expand by 730bps due to film performance and strong library monetization
Highlights of Q2FY18 v/s Q2FY17
- Total Income at Rs. 2, 739 mn v/s Rs. 4,887 mn, down 44%
- PAT at Rs. 552 mn v/s Rs. 630 mn, down 12.4%
- EBIT Margin at 31.7% v/s 19.9%
- PAT Margin at 20.2% v/s 12.9%
Highlights of Q2FY18 v/s Q2FY17
- Total Income at Rs. 5, 473 mn v/s Rs. 8,991 mn, down 44%
- PAT at Rs. 1,035 mn v/s Rs. 1,219 mn, down 12.4%
- EBIT Margin at 29.4% v/s 19.8%
- PAT Margin at 18.9% v/s 13.6%
Mumbai, November 14, 2017: Eros International Media Limited (Eros International), a leading global Company in the Indian film entertainment industry, today announced its consolidated financial results for the quarter and six months ended September 30, 2017.
Total Income was lower due to 7 films (no high budget films) released in Q2 FY2018 as compared to 17 films (2 high budget films) released in Q2 FY2017. However, EBIT margins in Q2FY2018 expanded to 31.7% as compared to 19.9% in Q2FY2017 and PAT margins expanded to 20.2% in Q2FY2018 as compared to 12.9% in Q2FY2017 due to the film performances and strong library monetization.
Eros released 2 medium budget and 5 small budget films in Q2 FY18. Major releases were India’s official entry to Oscars 2018 - ‘Newton’, hit comedy ‘Shubh Mangal Savadhan’, ‘Munna Michael’, Trinity Pictures ‘Sniff’ amongst others.
Commenting on the performance of Q2 FY18, Mr. Sunil Lulla, Executive Vice Chairman & MD of Eros International Media Ltd. said,
“We have reported a healthy performance during the quarter on the back of strong releases, satellite sales and higher contribution from library monetization. During Q2 FY18, we released a total of 7 films, including films such as the hit comedy ‘Shubh Mangal Savdhan’, the celebrated film ‘Newton’ starring Rajkumar Rao, the Tiger Shroff-starrer ‘Munna Michael’, Trinity’s first release - ‘Sniff’, Projapati Biskut (Bengali) and Baap Janma (Marathi) amongst others.
It is a matter of pride for us that ‘Newton’, was chosen as India’s official entry for the Best Foreign Language Film category at the Oscars 2018. This underscores our strategy of focusing on content-driven films rather than high budget, big star cast formula films. During the period, the Company also continued to focus towards investing in a Hindi and regional film language slate and Trinity Pictures, India’s first franchise-driven Studio.
Looking forward, we have a host of highly‐anticipated releases coming up which include ‘Mukkabaaz’ in January, ‘Happy Bhaag Jayegi Returns’, ‘Chandamama Door Ke’, the India-China co-productions, ‘Panda’ by Kabir Khan, Trinity Pictures’ ‘Elephant Man’ directed by national award winning director Prabhu Solomon, Colour Yellow Productions film starring Shah Rukh Khan amongst others. Overall, the focus is more on content-driven films that are green-lit at an appropriate budget with attractive ROI possibilities and leveraging our strong library of films to generate margin-enhancing performance.”
Operational Highlights:
- Performance driven by well-budgeted releases and library revenues
o Operational Overview
o Theatrical revenues driven by releases of Shubh Mangal Savdhan, Newton, Munna Michael, Sniff, Prajapati Biskut (Bengali), Baap Janma (Marathi), Boss 2(Bengali) amongst others and satellite sales include revenues from ‘Sarkaar3’ and ‘Munna Michael’
o Company released a total of 7 films as compared to a total of 17 films in Q2FY2017
o Healthy contribution from the Company’s extensive film library contributed to the financial performance
o Diversified revenue mix
o During Q2 FY2018, Theatrical Revenues contributed – 36.7%, Overseas Revenues – 13.3% and Television & Others – 50.0% as a percentage of Income from Operations
- Strong emphasis on content-backed films
o Newton - India’s official entry to Oscars 2018
o The highly-acclaimed movie – Newton starring Rajkummar Rao, Pankaj Tripathi and Raghubir Yadav has been selected as India’s official entry for the Best Foreign Film language category at the Oscars, 2018
o The film received rousing accolades at the Berlin Film Festival earlier in 2017
o At the box-office, the film saw a healthy run at the theatres and received outstanding critic reviews
o Shubh Mangal Savdhan – A romantic comedy well-appreciated by the audience and critics
o The medium-budget film registered good box office collections – delivering an attractive Return on Investment
- Trinity Pictures – Strong pipeline of releases
o Trinity’s first franchise Sniff released to good reviews in August 2017
o Sniff also available as a comic book series, arcade game and merchandising
o Trinity set to release five films in FY2019, including one Indo-China production
o Elephant Man, a big scale action franchise to be shot simultaneously in Hindi, Telugu, Tamil
§ Film directed by national award winner Prabhu Solomon, begins shoot in January 2018. Rana Daggubati will play the lead in the film along with top actors from Hindi and South industry
o Other films in pre-production include the action thriller, Pitch White, to be directed by Vipul Shah and a young comedy franchise, Amsterdam
o Scripting is completed for Trinity’s first Indo China co-production, Panda, to be directed by Kabir Khan and casting will now begin for the film
o Trinity will be producing a two part film series Krishna Key, an adaptation of Ashwin Sanghi’s best selling novel of the same name for which Trinity has acquired rights
o In addition, Trinity is producing four originals for ErosNow – Flesh with Siddharth Anand, Flip with Bejoy Nambiar, Kurukshetra with Prakash Kovalamadhi and “Hacked” with Abbas Tyrewala to be released in FY2018/19
Major Upcoming Releases
|
Film Name
|
Star Cast/(Director/Producer)
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Language
|
Tentative Release
|
|
Rukh
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Manoj Bajpayee, Adarsh Gourav, Smita Tambe
|
Hindi
|
Released in Q3
|
|
Ribbon
|
Kalki Koechlin, Hitesh Malhan, Sumeet Vyas
|
Hindi
|
Released in Q3
|
|
Viswa Vikhyatharaya Payyanmar
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Deepak Parambol, Aju Varghese, Sudhi Koppa
|
Malayalam
|
Released in Q3
|
|
Rang Be Rang Er Kori
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Rituparna Sengupta, Arunima Ghosh (Ranjan Ghosh)
|
Bengali
|
FY2018
|
|
Nila Choley Kiriti
|
Indrani Sengupta, Rituparna Sengupta (Anindya Bakash Dutta)
|
Bengali
|
FY2018
|
|
Mukkabaaz
|
Vineeth Kumar & Zoya (Anurag Kashyap / Colour Yellow Productions)
|
Hindi
|
FY2018
|
|
Nimmo
|
Anjali Patil, Karan Dave (Rahul Sanklya / Colour Yellow Productions)
|
Hindi
|
FY2018
|
|
Happy Pill
|
Ritwick Chakraborty, Sohini Sarkar (Moinak Bhowmik)
|
Bengali
|
FY2018
|
|
Nervazhi
|
Nayanthara (Bharath Krishna)
|
Tamil
|
FY2018
|
|
Happy Bhaag Jayegi Returns
|
Diana Penty, Abhay Deol, Jimmy (Mudassar Aziz / Colour Yellow Productions)
|
Hindi
|
FY2018
|
|
Bhavesh Joshi
|
Harshvardhan Kapoor (Vikram Motwane / Phantom Films)
|
Hindi
|
FY2019
|
|
Mumbai Pune Mumbai 3
|
Swapnil Joshi, Mukta Barve
|
Marathi
|
FY2019
|
|
Untitled
|
(Raja Chandra)
|
Bengali
|
FY2019
|
|
Untitled
|
(Sandip Ray)
|
Bengali
|
FY2019
|
|
7 Kadam
|
Amit Saadh, Diksha Seth, Ronit Roy & Others / (Mohit Kumar Jha)
|
Hindi
|
FY2019
|
|
Tannu Weds Mannu 3
|
Anand L Rai
|
Hindi
|
FY2019
|
|
Heer
|
Colour Yellow Productions
|
Hindi
|
FY2019
|
|
Ticket to Bollywood
|
Amyra Dastoor, Diganth Manchale / (Eros)
|
Hindi
|
FY2019
|
|
Chandamama Door Ke
|
Sushant Singh Rajput, Nawazuddin Siddiqui (Sanjay Puran Singh)
|
Hindi
|
FY2019
|
|
Soorma
|
Saif Ali Khan & Others (Navdeep Singh / Colour Yellow Productions)
|
Hindi
|
FY2019
|
|
Manmarziyaan
|
(Anurag Kashyap / Colour Yellow Productions)
|
Hindi
|
FY2019
|
|
Fake
|
(Raj & DK)
|
Hindi
|
FY2019
|
|
Untitled
|
(Homi Adajania / Maddock Films)
|
Hindi
|
FY 2019
|
|
Badlapur 2
|
(Sriram Raghavan / Maddock Films)
|
Hindi
|
FY 2019
|
|
Untitled
|
Shah Rukh Khan (Anand L Rai / Colour Yellow Productions)
|
Hindi
|
FY2019
|
|
Untitled
|
(Rahul Dholakia)
|
Hindi
|
FY2019
|
|
Jaita
|
Harman Baweja (Harry Baweja)
|
Hindi
|
FY2019
|
|
Guru Tegh Bahadur
|
(Harry Baweja)
|
Punjabi
|
FY2019
|
|
Re Union
|
Sujoy Ghosh
|
Hindi
|
FY2020
|
|
Welcome 3
|
Firoz Nadiadwal - Base Industries Group
|
Hindi
|
FY2020
|
|
Table No 21 - Part 2
|
Next Gen Films - Aditya Datt
|
Hindi
|
FY2020
|
|
Untitled
|
Vipul Shah
|
Hindi
|
FY2020
|
|
10 Janpath
|
Next Gen Films - Aditya Datt
|
Hindi
|
FY2020
|
|
Phobia 2
|
Next Gen Films - Pawan Kriplani
|
Hindi
|
FY2020
|
About Eros International
Eros International Media Ltd. (BSE Script Code: 533261; NSE Script Code: EROSMEDIA) is a leading global company in the Indian film entertainment industry that acquires, co-produces and distributes Indian films across all available formats such as cinema, television and digital new media. Eros International is part of Eros International Plc, which became the first Indian media Company to raise capital and be listed on the New York Stock Exchange. Eros International has experience of over three decades in establishing a global platform for Indian cinema. The Company has a competitive advantage through its extensive and growing movie library comprising of over 1,200 films, which include Hindi, Tamil, and other regional language films for home entertainment distribution. Eros International has built a dynamic business model by combining the release of new films every year with the exploitation of its film library. For further information please visit: www.erosintl.com