Eros International Media
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Forum Name: Microcaps-When will value.be unlocked?
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URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=3018
Printed Date: 27/Apr/2024 at 10:23am
Topic: Eros International Media
Posted By: dilip.r
Subject: Eros International Media
Date Posted: 06/Oct/2010 at 4:52pm
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Eros International Media, part of the Eros Group, which is a global player within the Indian media and entertainment sector
Considering potential growth in Film industry and expanding exhibition platform in India, we see strong opportunity for increase in theatrical revenues, thereby providing opportunity for movie content and distribution players. Also we are sanguine about rapid analogue to digital migration and emergence of new digital media platforms which have provided the opportunity to de-risk the movie business model through pre-sale of rights. Eros with 30 years of experience in acquiring movie rights and strong movie distribution network in India is expected to largely benefit
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Replies:
Posted By: dilip.r
Date Posted: 06/Oct/2010 at 4:53pm
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We have lined-up a capital expenditure of Rs. 700 crore over the next two years. Most of the funds will go into distribution of films and also to co-produce movies in more regional languages such as Bengali, Gujarati and Telugu," Eros Group Executive Chairman Kishore Lulla told reporters after the company's listing |
Posted By: dilip.r
Date Posted: 06/Oct/2010 at 4:55pm
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Eros Intl aims to grow at 50% CAGR over 2-3 years
In an interview with CNBC-TV18’s http://connect.in.com/udayan-mukherjee/profile-395208.html - Udayan Mukherjee , Kishore Lulla, executive chairman at Eros International spoke about the company’s plans going forward. The company, he said, is aiming to grow at 50% CAGR over the next two-three years. “The focus will be on PAT and cash flow levels,” he added. Historically, in the last four years, we have grown at 58% CAGR and in the next two-three years we are looking to grow at about 50% CAGR. We have got some great projects lined up. Eros model is just not about some great projects but it’s about the sustainability of the cash flows and the library also producing lot of revenues.
We have great projects in Bollywood, in Tamil and in many other regional languages, which is going to give us sustainable cash flows in the years to come I am looking at next two-three years CAGR of about 50% bottomline. At Eros we are mostly concentrating more on the bottomline PAT and the cash flows and not a topline driven business—how do we sustain that bottomline. So we are looking at next two-three years at least 50% CAGR
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Posted By: dilip.r
Date Posted: 06/Oct/2010 at 5:12pm
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Rs 83 crore of PAT that you reported in FY10
Anjaana Anjaani. It did a gross of 45 crore on the weekend in India itself but the cost of the movie was around 40 crore. We had syndicated satellite for about Rs 20 crore and the music and other rights. We recovered the whole cost. So the India box office is quite a big upside for Eros and the movie is doing great business at the Indian box office and as well as internationally
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Posted By: dilip.r
Date Posted: 06/Oct/2010 at 5:12pm
| EMIL sources all Indian film content for the Eros Group and exploits content across formats within India, Nepal and Bhutan. The Eros India library has rights of over 1,000 films, comprising of previously released films and music videos. The international distribution rights for such films (excluding Tamil Language films) are sold to overseas affiliates. It is also engaged in co–production/ production activity |
Posted By: dilip.r
Date Posted: 06/Oct/2010 at 5:13pm
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the company is all set to release about seven to eight big budget movies (above Rs. 40 crore) such as 'Ra.One', starring Shahrukh Khan, and 'Agent Vinod', with Saif Ali Khan, amongst others |
Posted By: TCSer
Date Posted: 06/Oct/2010 at 5:16pm
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Business model is impressive, experienced promoters, huge growth looming.
Interesting story to watch out for
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Posted By: dilip.r
Date Posted: 06/Oct/2010 at 5:17pm
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Eros (for movies)+ Inox (for multiplex) + Agro tech foods ltd (for popcorn)
Did i get the full package ?
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Posted By: dilip.r
Date Posted: 15/Oct/2010 at 11:44am
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Eros International Media Ltd (Eros International), the largest integrated film production and distribution studio in India, has announced a multi-film content licensing deal worth Rs. 64 crore for exclusive broadcasting of certain Eros International's movies across Zee Entertainment’s television network. This takes the cumulative revenue visibility from pre sales of music and television rights of new and catalogue films for FY2011 and FY2012 to Rs 240 crore |
Posted By: valuepicks
Date Posted: 16/Dec/2010 at 4:53pm
Dilip, your package is wonderful! 
btw, it is not very clear from description if Eros is a movie distributor or producer? It sounded more of distribution business to me...
What are the risks in movie distribution business? Do they get to see the movie (prior to release) so that they can assess whether they will benefit from taking distribution rights? Or is it like they cut a deal with Yash Chopra and they have to distribute all his movies - whether good or ugly??
When we talk about building a library of movies, I hope they will get the rights for movies that were accepted and which might remain in favour for long time - not a typical good-for-one-time movies! I believe, the benefit in building a library is to syndicate content through TV/DTH etc., Will they also hold rights for DVDs?
How are margins in distribution business? Who are comparable competitors in this space?
Apologies for too many questions...
------------- Investment Rule #1: Do not lose capital. Rule #2: Do not forget Rule #1 - Warren Buffett. |
Posted By: SimpleInv
Date Posted: 16/Dec/2010 at 5:30pm
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Eros is more into distribution then production. They have produced many movies as JV. Ra.one is joint production.
I am not sure if they have tie up with producers. But what I have notice is All SRK home productions are with eros, same is the case of nadiadwala grandson..major ajay devgan/kumar mangat productions as well...always make hell lot of money overseas(all SRK starers, this yr robot).till 07 eros used to have atleast 35% of all the big movies, but now eros need to fight with likes of reliance big pictures, ashtivinayak etc. Its a very well managed company but issue is bollywood/tollywood hit ratio is very very low. |
Posted By: rdyn
Date Posted: 16/Dec/2010 at 12:51pm
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I am trying to understand the business and I just looked at the releases Eros has made so far in 2010 and I see only Dabaang was a hit and all other below average or flops. Robot was a bumper hit but it has only overseas rights, where I am sure they would have made a lot of money.
Even the upcoming releases, Yamla Pagla Dewana (I am not sure how it will play, the Deol's haven't had a hit in what, decades? The comedy track seems to be good though) Also, Sun brought the distribution of the mega hit "Enthiran" from Eros and Ayngaran after Eros's films like Yuvraj and Drona tanked at the BO and Eros only did it overseas. Just saw Toonpur trailer on IMDB which is not upto any animated mark too and it clashing with Tees Maar Kaan (Dec 22 vs Dec 24). Upcoming R A One seems like a trigger. So, please help me understand how EROS benefits from distribution? Currently it is at available at the IPO band of its September IPO listing. Also, I read somewhere that the entire Eros music catalogue (audio and video) in all formats possible is bought by Tips including R A One. Interesting to note Ra.One' starring Shah Rukh Khan and Kareena Kapoor will have music by Vishal and Shekhar and 'Rockstar' starring Ranbir Kapoor will have music by A R Rehman! Another announced television syndication deal with Star also might help in its visibility. Some finds and facts. Movie - BO Verdict Housefull - Average Milenge Milenge - Flop Knock Out - Average Mitti - Flop Paathshaala - Flop. Dabangg - Hit Aakrosh - Critic/Flop Golmaal 3 - Flop No Problem - Below Average Pankh - Flop Haapus - Flop Khatta Meetha - Flop Anjaana Anjaani - Flop Veer - Flop The Great Indian Butterfly - Flop Robo (Enthiran) - Bumper Hit Sources:
------------- My aim is to read each and every post on TED! |
Posted By: valuepicks
Date Posted: 17/Dec/2010 at 5:35pm
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rdyn,
I guess you dived into lots of details. From your info, it looks like 'distribution business' is more like relationship-driven for bollywood. There are too many flops than desired hits...
If I were to be a distributor, I feel that I should have a previlege to decide to-bid or not-to-bid for such rights based on my assessment. And this has to happen very formally - i mean, producer inviting a set of interested distributors, show them the movie and invite formal bids for rights.... i don't think this kind of process is in place. Else, we will not see so many flops...
Now I see, very clearly, the risk in distribution of movies - compared to being a distributor of Nestle, say! There is no predictability of customer response to your product, in case of movies! ------------- Investment Rule #1: Do not lose capital. Rule #2: Do not forget Rule #1 - Warren Buffett. |
Posted By: aniljain
Date Posted: 17/Dec/2010 at 5:56pm
 eros vs utv software vs adlab vs shree astavinayak cine vision
Which one is fundamentally strong ?
Which one rank above on managment integrity? ------------- Investment is an art, not science |
Posted By: rdyn
Date Posted: 17/Dec/2010 at 7:42pm
Thank you, valuepicks. I am very new to this (markets and stocks) and so, I am not leaving any stone unturned. I am learning a lot of things by doing research and trying to understand the markets and businesses. I hope the above research will help some make uniformed decisions just like other Teddies and Seniors like you share quality information and insights helping newbies like me take uniformed decisions. I have seen what movies could do to stars, producers and distributors! Well, I also have this query of why a distributor would take up a movie which might be a flop. Are the rights sold before. (Rights could be Audio, TV Distribution, CD/DVD/Blu-ray??) Will they be allowed to listen to the songs or watch the movie before buying the rights? You are very right about the risk involved. I see websites or friends on facebook or on twitter giving live feeds about whether a movie is good or not. There goes all the 6 months-1yr put in the movie in one day. So, yes, distribution a very risky biz indeed. ------------- My aim is to read each and every post on TED! |
Posted By: SimpleInv
Date Posted: 19/Dec/2010 at 9:55pm
UTV, EROS |
Posted By: sbkv
Date Posted: 19/Dec/2010 at 8:59am
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I think this business is extremely scalable & with new avenues to monetise opening up (DTV, VOD, IPTV, Youtube,etc). Also if you look at the trends biggest collections have been in recent times each beating the other( SIng is King, Ghajini, 3 Idiots, Robot.....) More collection == more revenue ==more profits. Number of Multiplexes is increasing .Distribution is going digital which means lower costs & higher margins. JUst imagine if company was able to grow 40% CAGR with moderate hit/flop ratio what it can do if it comes up with just a few winners. I think this is a serious re-rating candidate. Short term trigger is going to be release of RA.one but its a good hold for the long haul Only reason UTV commands higher premium is since Disney holds majority stake else i would rate Eros at the best pick among the lot |
Posted By: jamesvaikom
Date Posted: 20/Dec/2010 at 5:22pm
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@sbkv
If you think about DTV, VOD, IPTV, Youtube,etc, you should also think about 3G speed increase. I saw a demo in tatadocomo.com about difference in time for downloading 700 MB movie using 2G and 3G internet. I don't think there are many legal websites providing 700 MB movies. But 1 benefit is income generated from bollywood movies is very less compared to hollywood movies. If bollywood film makers can think bigger, they can generate income near to hollywood movies. At current levels Balaji telefilms is less risky than Eros. |
Posted By: commnman
Date Posted: 29/Jan/2011 at 12:16pm
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Picture abhi bi baaki hain !
(Note: Comparisons are sequential i.e. SQ-10) Total Income up impressive 50% to 279.75 Cr from 186.62 Cr. EBIDTA up 11.3% to 62.2 Cr from 55.86 Cr. Net Profit DOWN 5.6% to 42.79 Cr from 45.33 Cr. EBIDTA margin is 22.23% V/s 29.93% NET Pr margin is 15.3% V/s 24.3% Operating expenses up 72% 205 Cr from 119.35 Cr. Other expenses up 70% to 8.27 Cr from 4.89 Cr. If that brought down the EBIDTA... Tax incidence gone up 157.5% to 18.67 Cr from 7.25 Cr. Then this brought down the profits! This entertainment & Showbiz is highly unpredictable. Seems only hope now is Ra.ONE ! ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: sbkv
Date Posted: 30/Jan/2011 at 12:05pm
| With World cup & IPL to follow next few months would be DROUGHT season for Movies/distributor business & BOOM season for ESPN/Set max . Ahh the irony of it all |
Posted By: sainivas
Date Posted: 08/Mar/2011 at 4:10pm
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India has the youngest population in the world. The occupancy rates at movie halls are low due to dearth of good content While it is true that seasonal events like IPL/ICC takes away people from theatres these are annual events at best. Further once the consumption of content over DTH and IPTV takes off (these are in the infancy but are rapidly maturing), Content will truly become king..the same content will be consumed by a large audience, mostly desis world wide. The leader in the business, EROS, is less than 8X FY 12 earnings.... It has the potential to be a huge multibagger over the next 3 years.  3 ------------- Agey Dekho |
Posted By: barla
Date Posted: 08/Mar/2011 at 9:43pm
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An outing at a good movie theatre for 3 of us costs about Rs. 1000/-. I wonder if it is worth the expnese.
I am a mvoie buff and watch a lot of movies in theatre. I range my movies across theatres cositng Rs. 75 a ticket to Rs. 300/-.
The high cost is keeping a good chunk of cine goers out of the halls. Hall owners charge exorbitant rates and a few movies run to packed houses. So it is the same crowd that is milked.
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Posted By: hit2710
Date Posted: 10/Mar/2011 at 10:37am
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EROS INTERNATIONAL cmp 140 mcap 1280 cr The company is mainly into film co production and distribution business. The company tries to de-risk its business model by recovering majority of its costs upfront from pre sales of overseas rights, music rights and broadcasting rights on TV, internet, 3G, movie on demand on satellite tv etc. The company either co produces the movie or acquires the movie rights from the actual producers at various stages of production for an agreed amount. It recovers around 35-40% of total cost from its parent Eros Intl by selling overseas rights, 10-15% of rights from music pre sales from its partner T series, and Television rights bring in another 20-25%. Hence effectively it recovers around 75-80% costs upfront and hence reduces the risk of box office performance. THEATRICAL RELEASE: Here the company pre sells the films which it has either produced or has acquired the rights of to various theatrical networks with upfront commission of 20% . Once the film is completed, Eros finances the printing and advertising expenses and distributes the movie prior to its release. The minimum guarantee and the printing and ad expenditure are recovered from the box office collection of theatres and Eros retains the sales commissions. After deducting the above expenses the balance is shared with the producer as per agreed terms. MOVIE LIBRARY Eros sells movies from its library for a fixed period or for a fixed number of viewings to various channels. Here it gets an upfront license fee and /or a share of the ad revenues as per the understanding with the channel involved. Eros has a movie library of around 2000 films and is using this content to improve its profits. Recently it signed a deal with Zee Entertainment to exclusive broadcast its movie library on the latter’s channels. The company also raises revenues by launching original DVDs , VCDs etc for home viewing. REGIONAL FILMS FORAY Ayngaran Intl is a 51% subsidiary of the company and is involved in Tamil Films which it produces and distributes. It is also a strong player in the overseas Tamil Films market. Eros is also involved in Punjabi Film, Marathi films in the regional genre of films. OTHER REVENUE STREAMS include providing ring tones and other content for mobile phones, putting up trailers and contents on internet and you tube and getting shares of ads generated etc. FORTHCOMING FILMS include Bangkok Blues with Irfan Khan, Game with Abhishek Bachchan, Zindagi na milegi dobara with Hrithik Roshan, Always Kabhi Kabhi, Mausam with Shahid Kapoor, Chalo Dilli with Vinay Pathak and Lara Dutta, RA One with SRK, Agent Vinod with Saif Ali Khan, Desi Boys with Akshay Kumar, John Abraham and Deepika Padukone, Rockstar with Ranbir Kapoor, etc. FINANCIALS
The current equity is 91.4 crores with shares of face value of Rs 10 each. Promoters hold around 78% stake with no pledging. FIIs hold around 8% and DII hold around 2%(mainly IDFC small and midcap fund). IPO was priced at Rs 175 per share. POSITIVES: Dominant player in the Hindi film industry with increasing market share Successful entry into lucrative regional film industry Strengthening its theatre and digital distribution network High demand for film software from various TV channels Large content library consisting of more than 2000 films which can be exploited in various ways. NEGATIVES; Decreasing shelf life of films—first few weeks are very critical to revenue generation Piracy of movies would eat into the company’s revenues Seasonality of business with Q2 and Q3 being the best quarters with Q1 and Q4 being soft quarters. Delays in film production might lead to cost over runs. VALUATION: The company is likely to report EPS in the range of 13-14 for FY 11 based on 9M figures. The company is a relatively low debt company and has shown consistent growth in sales and profits in the last four years. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: prudentinvestor
Date Posted: 15/Aug/2011 at 11:31pm
------------- "All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out..” - Peter Lynch |
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Posted By: prudentinvestor
Date Posted: 15/Aug/2011 at 11:34pm
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Higher interest outgo is a concern Company should show strong numbers for Q2 against hits like Ready, Muder 2 and Zindagi Na Milegi Dobara. Q3 should be huge based on Ra.One. The stock looks poised to touch new highs over the next 6 months. ------------- "All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out..” - Peter Lynch |
Posted By: shontou
Date Posted: 17/Aug/2011 at 9:33pm
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Conference Call
Eros International The Company expects 5 major releases in balance part of 2011 Eros International has announced the results for the quarter ended June 2011. The Company held conference call to discuss the results and future growth strategies. The key takeaways of the call are as follows: Highlights of the Call: Consolidated net sales grew by 22% to Rs 153.81 crore for the quarter ended June 2011. The growth was mainly driven by Theatrical success of movies like Ready, Chalo Dillli and Tamil films Avan Ivan, Engeym Kadhal and Ko. Further, there was strong contribution to the revenue from the Catalogue portfolio and stable revenue from the VFX facility. Interestingly, 35% of the revenues comes from the Theatrical rights, 30% from the Cable & Satellite and the remaining will come from the International Sales. Other income stood at Rs 8.43 crore during the quarter, includes Rs 2.5 crore write-back of an employee stock option plan ESOP) provisioning relating to the lapse of ESOPs of the employees exiting the organization. It has released 19 films in the quarter ended June 2011, includes 7 Hindi films and 12 Tamil films. Further, it expects five major releases in the year 2011, which include Mausam, RA.One, Rockstar, DesiBoyz, and Agent Vinod. It has the 3 categories of movies Large, Medium and Small budget movies. Generally, the large movies will contribute 50-60% of the overall revenue and the rest will come from the medium and small movies. The Gross collections from the Zindagi Mile Na Dubhara are at Rs 145 crore worldwide as on Date. Out of which Rs 110 crore are from the India The Company adoption of co-production model controlled the cost, quality and mix of the film slate further resulted to scale up rapidly. The Significant portion of the Company's FY'12 film slate cost has been recovered via pre-licensing of television and music licensing deals. Further, it continues to enhance strength of film slate giving the Company excellent visibility over releases for the next two years. Its strong release pipeline in FY'12 should be the strong year for the syndication. Also, It has entered into pre-licensing deals with Star network, Zee TV, Sony and other television broadcasters in India as part of its de-risking business model. Further, it feels that the pre-licensing provides the revenue visibility as well as underwriting a significant portion of the movie cost and reduces the risk associated. Its majority owned Subsidiary, Ayngaran provides syndication content and also distributes Tamil film content in Western Europe through its own television station which has about 20,000 subscribers. It is pioneering a strategy to launch India's first multi-platform model to access the old, new and original exclusive content for the music and film content online. The budget for the Ra.One is not more than Rs 100 crore from the Eros International. If budget exceeds the limit, will be taken up by the other party. Further, it will get the certain returns up to their investments recovered then after that the sharing will be 50-50%. The Gross Debt is at Rs 200 crore as of 30th June 2011 and the net Debt is at Rs 80 crore. The Company has released 70-75 movies in all languages for the FY'11. Further, it expects the same number of the releases for the FY'12. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: xpresso
Date Posted: 01/Oct/2011 at 9:16pm
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Tried to understand the fundamentals without much luck. For eg. if they are involved with Mausam - how does the business work.How much is the cost of acquisition between Eros and Religare ? What is the income ( assume 50% of ticket sales split ) and 39% + 30% of profit overseas (~ 10% of income overseas).
If anyone understands the sector - please help in understanding the fundamentals. |
Posted By: rohit1889
Date Posted: 18/Oct/2011 at 11:48am
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Eros should have more upside with some blockbuster movies in Pipeline. Many are big budget movies and with heavyweight star cast Ra-one,Rockstar,Desi Boyz,Rana,Agent vinod |
Posted By: dhiren2k7
Date Posted: 18/Oct/2011 at 11:58am
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DEAR BUDDIES,
PLEASE KEEP AWAY YOURSELF FROM THIS TYPE OF STOCKS BECAUSE,
EROS IS NON-TANGIBLE INCOME COMPANY, NOBODY CAN RECOGNIZE ITS ASSETS , BUSINESS ITSELF NON-TANGIBLE , CAN NOT RELY ON THE BUSINESS, ITS VERY DANGEROUS BUSINESS AT ALL.
RA-ONE IS 150 CRORE MOVIE , STARTED SINCE 2 YEARS IF IT EARNS 200 CRORE THAN ALSO ITS NOT WORTH , MAUSAMMOVIE IS SUPER FLOP.
SELL AND EXIT AT THIS LEVEL, EVEN THOGH IT LOOKS ATTRACTIVE, STAY AWAY.
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Posted By: xpresso
Date Posted: 19/Oct/2011 at 12:19pm
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Dhiren - Eros does not just depend on theatrical success for its income. Eros is normally a co-producer and does not run the entire risk.
They pre-sell satellite rights and are also assured of 30% of costs from Eros UK for the overseas rights. They also earn 30% of international profits. In addition there are music rights and now co-branding ( for Ra-One they raised Rs 52 Cr). So they make 70-80% even before movie is released. Also they recover their costs before profit sharing with co-producers or if they have acquired content from the original producer. The movie library gives regular income from satellite channels and with increase in channels demand is increasing not just for Hindi movies but also regional movies. And there is tangible value for good content. If they sell the rights of say Zindagi Na Milegi Dobara to some other player they will definitely earn some income. If you google a Kotak Mar 11 report on Eros - it will give a very good perspective of the business model. |
Posted By: rohit1889
Date Posted: 19/Oct/2011 at 11:42pm
can you plz provide the link for the report? I didn't find it 
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Posted By: xpresso
Date Posted: 19/Oct/2011 at 12:05pm
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Here is the link
http://groups.google.com/group/dpstock/browse_thread/thread/0589efca5ff1e4ee# |
Posted By: jamesvaikom
Date Posted: 21/Oct/2011 at 10:50am
| Does Eros have monopoly? Their Subsidiary company Ayngaran release DVDs of almost all tamil movies. Sun network buys DVD rights for Indian market along with satellite rights. As sun network don't release DVDs, Ayngaran's products are sold in India also. Monopoly is not good for industry. If they are getting monopoly through blackmailing, like sun network did in past, they will land in trouble in future. Hope they are doing business in honest ways. |
Posted By: rohit1889
Date Posted: 26/Oct/2011 at 11:05pm
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RA-One seems to be a flop judging by the reviews frm frnds on FB and also by TOI.
This stock might see some selling bcoz of this. But Eros has mentioned that they have covered all their production costs. According to the producers, they have already recovered a major portion of their investments thruogh in-film branding, media endorsements and pre-licensing cable and satellite rights, music, etc. So a deep cut can be seen as an buying opportunity as panic sellers will ignore the mentioned fact, the same as it happened after flop of Mausam. Also Rockstar seems to be a good movie. Its songs r no doubt a hit bcoz of AR Rehman factor. ------------- If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored. |
Posted By: rohit1889
Date Posted: 27/Oct/2011 at 10:59pm
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Media professional and industry observer Abhijit Mhamunkar says, "The opening day collections of Ra.One are somewhere between Rs 15 and Rs 16 crores. In spite of the ticket prices being increased and the film opening in more screens than ever, the movie doesn't even seem to come close to the first day collections of Bodyguard (Rs 21 crores)."
Can this be due to occasion of Laxmi Puja? I just visited diff multiplexes in Pune and i must admit i haven't seen multiplexes so jam packed. 95 % shows were RA-ONE and huge public had turned up. Might be the SRK factor. ------------- If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored. |
Posted By: jagbir
Date Posted: 27/Oct/2011 at 12:08pm
They spent hell lot of money on promotions and driven public crazy. I didn't find the movie that good, can't tolerate it for second time. ------------- I find that the harder I work, the more luck I seem to have. |
Posted By: SimpleInv
Date Posted: 28/Oct/2011 at 1:37pm
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http://www.indiainfoline.com/Markets/News/Ra.One-earns-Rs.-62.50-crore-in-opening-two-days/5276134556 First day was impacted due to diwali puja, still highest ever worldwide nett 0f 25 cr(18.5(15.5 cr hindi+ 3 cr regional versions)+ 6.5 cr overseas). (Also highest ever diwali day) Day 2 numbers are out of this world. Highest one day collection ever. As of now 25.10 cr nett only from hindi version in india, add another 3 cr for regional it has beaten the one day record by more than 40%. Eros should start making money by Saturday. |
Posted By: rohit1889
Date Posted: 28/Oct/2011 at 5:42pm
Great news. Multiplexes are jam packed. People are disappointed after watching the movie, but they are visiting the theater atleast once to get disappointed. Why? May be bcoz of CHAMMAK CHALO or bcz they have no other option and don't want to see HIMESH
Bottomline is RA-One will be good for bottomline of Eros. ------------- If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored. |
Posted By: BIKRAM
Date Posted: 28/Oct/2011 at 6:02pm
May be bcoz of CHAMMAK CHALO or bcz they have no other option and don't want to see HIMESH  HHAHAH GOOD ONE ROHIT |
Posted By: SimpleInv
Date Posted: 28/Oct/2011 at 10:40pm
| Yes. Pre release marketing and hype was good enough to bring crowd. Its sure shot going to become first movie to make 100+crore by first weekend itself. Content and word of mouth are becoming irrelevant for big starers, everything is getting recovered in first few days.RA.one numbers are unprecedented. |
Posted By: NikhilM
Date Posted: 28/Oct/2011 at 3:52am
| Most Indians get their dose of entertainment from Movies,especially Bollywood. Being holidays,people do go out for movies and with ~95% screens blocked by Ra.One,people have no other option. The movie was bound to make money,whether good or not. |
Posted By: vsb2pwn
Date Posted: 31/Oct/2011 at 12:12pm
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What Are Ra One Figures.......... Conflicting Reports........ Eros Media's Press Release Say "Eros International's Ra.One breaks all box office records for any Hindi film till date with the biggest ever gross opening weekend collections of Rs. 170 crore worldwide"But Check This !!! http://boxofficereport.net/ra-one-sunday-collections-excellent-weekend/ - http://boxofficereport.net/ra-one-sunday-collections-excellent-weekend/ |
Posted By: SimpleInv
Date Posted: 31/Oct/2011 at 9:53pm
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This seems to be some non professional site. check boxofficeindia.co.in. Or follow taran adarsh(www.indiafm.com) or komal nahta (koimoi.com) on twitter. Most of these known guys are quoting almost same figures 169 - 170 cr gross (92 - 96 cr nett india , 33 cr net overseas).
These figures includes all versions(Tamil, telugu). only hindi stands at 85 cr nett in india. |
Posted By: rohit1889
Date Posted: 07/Nov/2011 at 6:42pm
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RA-One sets new record Check this out: http://www.moneycontrol.com/news/entertainment/raone-breaks-box-office-recordrs-170cr-collections_607687.html - http://www.moneycontrol.com/news/entertainment/raone-breaks-box-office-recordrs-170cr-collections_607687.html ------------- If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored. |
Posted By: shontou
Date Posted: 17/Nov/2011 at 2:37pm
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Conference Call
Eros International Guides 30% growth for FY12 and 20% - 30% for FY13 Eros International announced the results for the quarter and half ended September 2011. The Company held conference call to discuss the results and future growth strategies. The key takeaways of the call are as follows: Highlights of the Call: For the quarter ended September 2011, the company has reported 6% decline in consolidated sales at Rs 174.8 crore. In Q2 FY11, the company had monetized its movie catalog, as such the result is not comparable. The operating margins decreased by 289 bps to 27%. The resultant PAT decreased by 40% to Rs 27.35 crore. For the half year ended September 2011, the company has reported 5% growth in sales at Rs 328.61 crore. 42 movies released across all languages with a mixture of large, medium and small scale movies. During half year, it has registered healthy contribution from satellite rights during the period under review underpinned by catalogue and film release schedule The operating margins declined by 228 bps at 23.5%. The resultant PAT declined by 19% at Rs 49.03 crore. The company has released a total of 42 films during the first half of FY 2012 of which a majority were Tamil language films, though key revenue contributions were made from the company's Hindi Releases. During the period under review, the company delivered significant revenues from its theatrical releases such as ‘Ready', ‘Chalo Dilli', ‘Zindagi Na Milegi Dobara', ‘Murder 2' and ‘Mausam'. Tamil Films included releases such as Engeyum Kadhal, Vedi, Avan Ivan, Ko, and Mankatha. The Company continues to strengthen its marketing and distribution strategy by executing 360 degree release campaigns that include brand tie-ups, outdoor, television, print, incinema, radio, mobile and online mediums to generate momentum and pre-release anticipation for a particular movie. This strategy was well showcased by the recent release of the highly anticipated movies such as Ra One and Zindagi Na Milegi Dobara. The adoption of such a strategies is a major competitive advantage for the company. Till date, Ra.One has collected Rs. 221 crore gross worldwide The Company has an unparalleled line-up of over 50 films in Hindi, Tamil and other languages. These releases are expected to benefit from the forecast industry trends of increasing average ticket prices and increasing numbers of multiplex screens, which will provide growth for the Company in the long term. The company has further augmented its future movie slate thereby significantly improving its visibility over FY13 and FY14. It has added over 10 Hindi movies that include ‘Housefull 2', ‘Tanu Weds Manu 2' and ‘Khiladi 786' as a part of its future slate. The management expects to deliver a strong full year performance on account of the successful release of Ra.One, high profile releases over the next two quarters and catalogue. It has given guidance of 30% growth for FY12 and 20% - 30% for FY13 Out of total Rs 700 crore loan and advances, Rs 650 crore is for film advances. The company usually incurs 10% to 20% marketing cost of budget of any film. The company has recovered 50% of cost through satellite and music right on DesiBoyz. The company has recently launched an application for IPad users. Eros PLC advance outsanding as on 30th September 2011 is Rs 219 crore. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: rohit1889
Date Posted: 29/Nov/2011 at 10:11pm
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Eros International's latest bollywood flick, Desi Boyz, has had a successful opening weekend collection of Rs 63 crore gross. The stock is up nearly 8% intraday today.
Kamal Jain, group CFO (India) of Eros International Media tells CNBC-TV18 that the film has received accolades not only in India, but has also had a good opening in UK, US and the Middle East. “Almost 75-80% of the cost was recovered even before the movie came to the theatre through satellite licensing, music and other deals,” he says. Rockstar too has been in the kitty drawing good revenues for the company in this quarter. Not to forget Ra-One and the film library they are monetising through the latest iPad application. Jain expects a bumper quarter and a stellar finish to the year this time around. Below is the edited trabnscruipt of the interview. Also watch the accompanying video. Q: Give us an idea of how much you have already raked in for Desi Boyz and have you recovered your initial cost? A: Desi Boyz has definitely reported a successful opening as far as weekend is concerned. We have collected Rs 63 crore worldwide for the weekend is concerned. I think it’s a very good performance from the movie, and it has definitely been appreciated across. It’s picking up good word of mouth and I think it will see a good run through the week as well. In fact, overseas also, the film has certainly done quite well in UK, US and Middle East. The chemistry between John and Akshay has been appreciated and it is a wholesome family entertainer. We are really happy with the performance of the film Desi Boyz and we are anticipating good numbers. As far as recovery of cost and profitability of the film is concerned, as per our model, we pre-licensed most of the stuff, and in this case also almost 75-80% of the cost was recovered before the movie came to the theatre through satellite licensing, music and other deals. After the first weekend, the movie is already into profitable zone. So we are very happy with the performance overall. Q: So what are the trade pundits telling you on how much are you likely to make on Desi Boyz going forward? A: As I mentioned, since the opening weekend has shown a very good trend, so going forward we are anticipating to rake in good numbers overall. Q: Any indication of a likely figure? What you are hearing, what is likely, what you are expecting? A: Can’t say anything about it in terms of expectations of the number, but definitely looking upwards because the word of mouth is really great, and during the week also, the movie is picking up. I think towards the end of the week, it should do really well. Q: In Q3, the movie Rockstar is also a part of the kitty, could you tell us atleast how much Rockstar made for you all? A: Rockstar also has done well. Rockstar is basically one the biggest opening of Ranbir Kapoor till date and seventh largest opening ever in terms of day one opening and weekend collections were definitely good. I think it did about Rs 63 crore gross in the first week itself, and after post-weekend also, it has really done a good number. I think we are looking upwards of Rs 100 crore in terms of gross numbers as far as India is concerned. So Rockstar also has done good to us and definitely it’s been appreciated across and it’s again a profitable venture for us. Q: It seems like you have had a slate of successful releases this quarter. Just give us a sense of what the second half of FY12 is looking like in terms of revenue bump up for you, especially focusing on the quarter underway? A: This is going to be a quarter as anticipated by us. Q3 has definitely done well for us because in this quarter, we have Ra-One which has really done wonderful collections. Worldwide gross is closer to Rs 230 crore as far as Ra-One is concerned, and similarly, Rockstar also has done wonderful collections, and now we have Desi Boyz. So, all these numbers are certainly as per expectations and we are looking upward in terms of achieving the Q3 numbers. The guideline that we have given for this particular financial year is 30% over the topline of last year, as well as on the bottomline. We are pretty much in the range of achieving all the targets what we had suggested, and anticipating further good numbers from the movies to come. As far as our catalogue monetization is concerned, that’s also looking upwards in terms of Q3 and Q4. We have just recently launched an iPad application which within 24 hours of its launch became number one application worldwide in entertainment category and 10th largest across all categories! So we are getting good response to that iPad application also wherein we are monetizing our 900 film library. So, I guess this is looking like a very good quarter and a good year. Q: Give us a sense of what other releases we can expect for the second half of FY12 and how exactly have you begun monetizing them in terms of satellite rights etc? A: As far as balance period is concerned, there is a couple of big movies still pending which you will see. Agent Vinod is releasing in February, so that’s another big movie which is coming up, and couple of films are also planned in this particular year itself. Then we have a big slate which we have already announced for FY13. FY13 we have more than 50 film announced. We have films like Houseful 2 releasing in early April and then we have films like Khiladi 786 which is again an Akshay Kumar starrer. We have couple of films with Shahid Kapoor and a few with Saif Ali Khan too. So, the slate is already filled for FY13, and we continue to increase our number of films as far as FY13 is concerned. So we are looking upwards for good number of FY13, more than what we are looking at in FY12. ------------- If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored. |
Posted By: rohit1889
Date Posted: 30/Nov/2011 at 12:38pm
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1. Ra-one production cost was around 150 cr. Eros had covered 80% costs before release through satellite rights, music,overseas rights and other pre-release stuff. i.e 120 cr was recovered. Now collections of Ra-one have been 230 cr. Is this the amount that Eros gets or Is this the total ticket collection done by Ra-one? Of this how much amount comes to Eros and how much goes to Multiplexes then? 2. I found somewhere on google that the revenue sharing clause between multiplexes and producers is 50-40-30% for week 1-2-3. Is the same followed by Eros? 3. So assuming 40% revenue sharing, Eros will get 92 Cr from Ra-one. So 92+120-150=62. So Ra-one has generated 62 cr profit for Eros. So that translates to a profit margin of 40% !! 4. Eros generally covers 70-80% cost of production before release. So isn't margin of safety high for Eros even if gets misses like Mausam ? 5. Also from where does Eros get this 150 cr for production of Ra-one? Does it take up loan from financers? Looking at these figures, i feel Eros should be a good investment as the margin of safety is high. Also due to rising disposable income there is no doubt that demand for movies will continue to grow. Also everyone normally watches 1-2 movies per month. So i'm not concerned as far as demand side is concerned. Also recently we see all big banner films being produced by Eros. ------------- If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored. |
Posted By: basant
Date Posted: 30/Nov/2011 at 3:53pm
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This company has a history of having turned out some real big winners but the stock market will always be skeptical about movie production companies. Eros will have to beocme another Disney in its business model if it wants to have a better discounting. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: MuKeShHaRlAlKa
Date Posted: 15/May/2012 at 12:15pm
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This company has some serious governance issues.
The company acquired the partnership firm of the promoters named Jupiter Enterprises way back in 1999 by issuing 50 lakh shares of Rs. 10 face value to their promoters Arjan Lulla (35 lakh shares) and Sunil Lulla (15 lakh shares). No independent valuation was conducted of the acquisition and no financial details of the partnership firm are disclosed. Then the promoters transferred these shares to two entities - Eros Wordlwide (35 lakh shares) and Eros Digital Private Limited (15 shares) and thereafter gave a bonus of 13:1. Then the promoters created an entity in 2006 named Eros Plc in the tax haven of Isle of Man and transferred their holdings in Eros Worldwide & Eros Digital to Eros Plc. Then Eros Plc got listed at the Alternative Investment Market of London Stock Exchange. Then Eros Plc opened offices in various parts of the world namely Canada, Dubai, Singapore, Australia etc. through newly incorporated subsidiaries. Then Eros India entered into an agreement with Eros Plc and its subsidiaries that it would sell international rights of its Hindi films to Eros Plc and in return would receive only 30% of the gross proceeds.(why the hell such arrangement?) One fine day, Eros Plc transferred its Tamil distribution co. Ayngaran to Eros India for free. Now the interesting thing is that the co. does not sell international rights of its tamil films to Eros Plc but rather distributes it on its own in international markets. (then why not for hindi movies?) Clearly, the Father (Arjan Lulla of Eros Plc) and Sons (Sunil & Kishore Lulla of Eros India) are taking investors for a ride. ------------- In Cricket & Stock Markets, everyone seems to be an expert but only a few really are. |
Posted By: MuKeShHaRlAlKa
Date Posted: 15/May/2012 at 12:38pm
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Lets look at some stats :
Out of the 9.14 crore shares outstanding currently, 7 crore shares have arisen because of the acquisition of the promoters' partnership firm by the company in 1999. Around 60% of its turnover comes from related party transactions. (read proceeds from sale of international rights to group entities) Promoters hold around 80% of the company. After the transfer of Ayngaran from Eros Plc to Eros India, revenues jumped 3 times. Eros Plc (listed on LSE) has a market cap of pound 288 million. Management personnel have been selling shares received via stock options for the past 6 months (cumulatively they have sold around 1 lakh shares) ------------- In Cricket & Stock Markets, everyone seems to be an expert but only a few really are. |
Posted By: kushal.masand
Date Posted: 15/May/2012 at 12:17pm
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Can you please share your source, would like to study it further.
And thanks, for bringing it up. ------------- Lets roll up our sleeves, and get to the work... |
Posted By: MuKeShHaRlAlKa
Date Posted: 16/May/2012 at 8:38am
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Source : Annual report and Public Issue Prospectus ------------- In Cricket & Stock Markets, everyone seems to be an expert but only a few really are. |