Categories Earnings, LATEST, Leisure & Entertainment

It’s a flop show from Eros International in Q1

India-based media and entertainment company Eros International (NYSE: EROS) on Tuesday reported first-quarter results that missed analysts’ expectations, even as the global subscribers for its video-on-demand platform, Eros Now, more than doubled to 21.1 million.  

Net revenue for the quarter plunged 25% to $43.5 million, far below the Wall Street estimate of $66.74 million.

eros international earnings
Image courtesy: Eros International

Meanwhile, the company swung to a profit of 3 cents per share from a loss of 20 cents per share a year ago. Analysts had set the bottom-line target at 12 cents per share profit in Q1.

EROS stock fell 3.5% during pre-market trading hours. The stock has declined almost 80% since the beginning of this year.

The company said in a statement, “We are on the cusp of completing our transformation from the Film Studio model into a Digital-led OTT business with traditional Studio offerings and capabilities. While this will have an impact on near-term revenues, principally to our syndication business in the overseas markets, this will increase the premium nature of our content and ultimately increase ARPUs and loyalty of our customers.”

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For the full fiscal year 2020, Eros expects consolidated revenue in the range of $200 million-220 million, weaker than the Wall Street target.  Adjusted EBITDA is expected in the range of $80 million – $95 million and net debt in the range of $100 million – 110 million.

Eros plans to achieve at least 50 million paid monthly subscribers for Eros Now within the next three years.

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 The company added that it has hired Citigroup to assist in reviewing strategic alternatives.  

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