Categories Earnings, Leisure & Entertainment

Eros International (EROS) slips to Q2 loss on lower revenues; subscription climbs

India-based media and entertainment company Eros International (NYSE: EROS) reported a net loss for the second quarter of 2020, defying expectations for earnings, even as the global subscribers for its video-on-demand platform, Eros Now, jumped 81% to 23.5 million. The company also reaffirmed its full-year 2020 guidance.

Revenue plunged 49% annually to $32.3 million during the three-month period, far below the Wall Street estimate. Adjusted EBITDA was $7.8 million, down 72% from the year-ago period.

Bottom-line Misses

Net loss attributable to equity holders was $27.9 million or 28 cents, compared to a profit of $13.6 million or 17 cents in the second quarter of 2019. Analysts were looking for a modest profit for the latest quarter.

Related: Eros International Q1 2020 Earnings Call Transcript

“As we see new players enter the Indian OTT market and international players such as Apple, Disney, Fox and Amazon redoubling their focus on India, we believe our market-leading offering built through years of investment and innovation puts us in a very fortunate position. We are one of the first OTT services to develop in India and are now benefiting from the foresight we had years ago to pioneer the market,” said a statement from the company.

Outlook

Looking ahead, the management continues to expect consolidated revenue to be in the range of $200 million to $220 million in fiscal 2020, and Adjusted EBITDA between $80 million and $95 million, which is unchanged from the outlook issued earlier.

Microsoft Deal

A few months ago, the company had announced a key partnership with Microsoft (MSFT) for enhancing the content streaming experience for consumers globally. The deal is expected to help the Eros Now platform expand its reach across all markets.

Also read: Walt Disney (DIS) Q4 profit dips 66%

Eros International shares had a dismal start in 2019 and lost about 83% since the beginning of the year. The stock traded below $2 this week, the lowest level since it started trading in the New York Stock Exchange.

Also Read:  UAA Earnings: All you need to know about Under Armour Q2 2020 results

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Yelp Q2 earnings: All key figures

Yelp (NYSE: YELP) reported second-quarter financial results after the regular trading hours on Thursday. The results were better than what the street had anticipated. YELP shares rose 4% immediately following the

Infographic: Uber (UBER) Q2 loss narrows; revenue beats

Uber Technologies (NYSE: UBER) reported its second-quarter 2020 financial results after the regular trading hours on Thursday. Revenues exceeded the estimates, while the bottom-line missed. Shares of the ride-hailing company

TMobile (TMUS) Q2 revenue up 61%; results beat Street view

TMobile US Inc.  (NASDAQ: TMUS) on Thursday announced financial results for the second quarter of 2020, reporting a 61% increase in revenues aided by strong customer growth. The results also

Top