Eros posts small 2010 profit, plans IPO
Drop in syndication revenue hits overall resultsNEW DELHI -- Eros International announced its preliminary results for the financial year ending March 31, 2010, posting a profit before tax of $49.5 million, up 2% from $48.4 million a year ago.
While overall revenues fell 4% to $149.7 million -- accounted for by a 17% slip in television syndication income to $52.9 million -- cashflow from operations was up 59% to $108.3 million, from $68.2 million a year ago.
Eros also plans to raise 3.5 billion rupees ($77 million) via an initial public offering on the Bombay Stock Exhange and is awaiting approval from the Securities and Exchange Board of India.
Following the Indian listing, Eros said it will delist from London's Alternative Investment Market and move to the main market of the London Stock Exchange.
“We now have over three years of track record of successful growth on AIM and believe that the main market represents a natural progression for us given our size and maturity as a business. We also hope to access additional pools of investment capital and liquidity as a result of the planned move,” the statement added.
A pioneer in distributing Indian films overseas for over two decades based in London and Mumbai, Eros International Plc was one of the first Indian entertainment companies to list on AIM where it raised £22.5 million ($35 million) in 2006.
Eros's exit from AIM follows that of other Indian entertainment companies such as UTV Motion Pictures and the Indian Film Co., which plans to buyback its shares after Viacom18 made an offer to acquire a majority stake in the film investment firm (THR 6 July 2010).
Eros released 83 films in 2009-10 compared to 94 in the previous year which saw its theatrical revenues grow by 8% to reach $50.2 million compared to $46.3 million a year ago.