Media and entertainment major Eros International’s recently released financial results for the October-December quarter of this financial year show that the company has begun to see a shift in its revenue mix shadowing the overall trend in the sector where television and digital platforms are gaining more steam.
Eros posted a decline of 7.4 per cent in its profit after tax during the quarter compared to the same period last year, but it’s total income from sales grew 62 per cent. Expenses more than doubled to Rs 255 crore due to higher film rights costs and amortisation, with total expenses rising despite lower finance costs and employee benefits expenses.
Eros’ revenues during the quarter came more from its television and digital segments than its theatrical releases, despite releasing 25 films during the quarter against just four in the corresponding quarter the previous year.
Eros had collected 42.8 per cent of its total revenue from theatrical releases in FY18, with television and digital, and overseas accounting for 46.3 per cent and 10.9 per cent respectively. But during the quarter under review, theatrical releases accounted for just 24.6 per cent of its total revenues, with television and digital, and overseas accounting for 52.4 per cent and 23 per cent respectively.
The rapid growth in the digital stream has promoted Eros to forecast that it would have over 16 million paid subscribers for Eros Now (its digital offering) by the end of March this year, up from around 13 million at the end of September 2018.
Sunil Lulla, executive vice-chairman & MD of Eros International Media Ltd, said that during the quarter, Eros released three original web series — the crime thriller Smoke, the entertaining and quirky Date Gone Wrong and the fun-series Paisa Fek Tamasha Dekh.
“We are committed to bringing fresh and engaging digital content targeted primarily to the millennial audiences on the Eros Now platform, and have an exciting pipeline of original content lined up for the upcoming quarters. We are confident, with our exciting content offering, the pace of subscriber addition for Eros Now will further accelerate,” Lulla said.
Going forward, Eros has several theatrical releases lined up, including Saif Ali Khan-starrer Kaptan, the trilingual remake of Haathi mere Saathi, Kaamiyab, Ticket to Bollywood, and a host of regional releases. On the digital side, it will launch originals like Dashavtar, Ponnyin Selvan, Flesh and Bhumi.
TV, Web trump theatre releases
Eros posted a decline of 7.4 per cent in its profit after tax during third quarter compared to the same period last year, but it’s total income from sales grew 62 per cent
Eros released 25 films in Q3FY19 against 4 in Q3FY18. Despite this, its revenues for quarter came more from its TV and digital segments
Its theatrical releases accounted for just 24.6% of its total revenues in Q3FY19, while TV & digital, and overseas accounted for 52.4% and 23% respectively