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.
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.”
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.
The company added that it has hired Citigroup to assist in reviewing strategic alternatives.
The retail industry was hit hard by the COVID-19 pandemic. The shelter-in-place orders and store closures impacted several major retailers and department store giants. Macy’s Inc. (NYSE: M) was one
Real estate investment trust companies, which were considered to be the safest for investment, have been shattered since March of this year. Hotels and resorts have been mostly closed with
Like all other businesses, the packaged food industry is going through a highly volatile phase, with the coronavirus bringing a paradigm shift in consumer behavior. While store operators, in general,