Recently floated on AIM, EROS looks set for fast growth in 2007. EROS buys the rights for the distribution of Bollywood movies in all formats (cinema, DVD, television etc.) usually for a cash lump sum on completion of the movie with no commission payable to the producer and also usually alongside the right of first refusal when the contract is up. This business model is high-margin (58.3%) and provides a steady income stream. Bollywood films are becoming increasing popular internationally and this is coupled with the embryonic state of the Indian cinema industry (there are only 12,000 screens for a population of over 1 billion and 90,000 screens are expected to be installed within the next 5 years). Profits for this financial year are expected to climb 61% to $32.4 million. EROS also benefits from being registered in the tax haven of the Isle of Man.

Positive news out today and about to hit 150

Yup this is looking good i'm hanging on to mine..

Eros buoyed by Love Aaj Kal opening
Business Financial Newswire
Indian media and entertainment firm Eros International had an extremely positive opening for 'Love Aaj Kal', with the film grossing INR62crores worldwide in its opening weekend.

The film has grossed over INR47crores in India and INR15crores overseas.

The firm said Love Aaj Kal had been a resounding success with never before seen response to a Hindi film overseas.

The film is in the UK Top 10 and Australia has shown fabulous collections of A$205,821, once again leaving behind previous hits.

Ticking up..

bid 150 now, very nice, probably be some profit taking now.

No problem ,i'm in for a while , or unless i hear any news to change my mind..

Ok forget the profit taking this is breakout time, 160 on the offer already.

This is on a run now.

Nicely up agin this morning..

Love Aaj Kal crosses Rs 1 billion in first week
By Indiantelevision.com Team
(8 August 2009 3:30 pm)

MUMBAI: Eros International's Love Aaj Kal has raked in Rs 1.08 billion in its first week, making it the biggest grosser of the year.

The movie, made in association with Illuminati Films Production, has collected Rs 750 million from India alone.

Says Eros International senior VP - Distribution-India Nandu Ahuja, "We are thrilled that our first venture with Illuminati Films has proven to be such a huge success. The superb run of the film in the first week has superceded all expectations. The Raksha Bandhan holiday greatly helped boost up admissions mid week".



Love Aaj Kal was released with approximately 1200 prints in over 1800 screens worldwide.

"Love Aaj Kal has performed incredibly well in all the overseas markets. We were expecting a commercial success but this kind of response has been overwhelming with all major markets indicating remarkable box-office results," says Eros International president (Distribution) Europe and Africa Pranab Kapadia.

Morning Jimmy b, love this share, every week some more positive news but it seems that its only you and me who are enjoying the ride, each to their own I suppose. Buys going through now over 170.

Morning lelael ,it does look like just you and me here ,i'm surprised no one else has cottoned on to this, positive news every day ,definitely a recovery stock...

Finished on it's high, nice..

More positive write up's ..

Eros, the leading owner and distributor of Bollywood films, has clearly had the wind return to its sails if results are anything to go by. This improvement is largely down to the shift in recent years of the business derived from India, which now represents over 60% of sales.

But last year Eros had to contend with all kinds of issues - the fact that between October and March this year the Rupee depreciated 25% against the dollar and impacted on its US$ reported earnings was particularly unhelpful. Then there were also the terrorist attacks in Mumbai and an industrial dispute with multiplexes over revenue sharing terms, which meant that like a number of producers, Eros delayed the release of four big films. Against that backcloth, it is therefore particularly pleasing to see that even despite those films not appearing, for the year to 31 March Eros has managed to grow sales and profit.

Revenues increased from US$113m to US$156.7m, reflecting growth in Eros TV syndication business and also in digital and home entertainment. The top line growth was the principal reason for EBITDA increasing from US$77m to a mouthwatering US$109.3m.

Although the shares have firmed in the past month, we think investors are still totally missing the point at Eros. As we have previously described, Eros' business model is that its first chunk of income is from theatrical (cinema) distribution, where it often launches films globally.

In 2009, Eros continued its investment in key films by signing deals with producers and talent, thereby locking in and guaranteeing future product. This saw cash investment of US$129m down from the previous years US$147. There are commitments in place for a further US$77m and since the usual timeline for projects is 12 months, we think this is going to see some blistering results in the current year.

Of course, the downside is that Eros writes off 60% of its investment in year one and although cashflows remain strong, such a policy depresses pretax profit. These results saw an amortisation charge of US$57.1m up from US$31m on its portfolio of film libraries and as a result the pretax profit in FY09 inched ahead by 7% to US$48.4m and eps was up 5% to 35.1 cents. The corollary however is that the four films have either been finished or are fully funded and once they are launched they will move to the back list where Eros will pull through income from DVD, TV syndication and online sales. The previously deferred star studded Kambakkth Ishq, Love Aaj Kal and Aladin films will all now fall this year.

In FY09, theatrical revenues declined by 11% to US$52.1m; this wasn't in any way to suggest that India suddenly stopped being a cinema crazy nation - it merely reflected fewer theatrical releases (24 released in India against 52 the year before). In fact, Indian box office revenues grew by 4% on a constant currency basis. Since the year end, the multiplex chains have come to an agreement with the film distributors and agreed new terms, which involves a 50:50 revenue split on ticket sales. To ensure it gets to keep more of this for itself, Eros has got rid of its sub-distributors and will distribute directly.

Even with the hiatus in new film launches, television syndication revenues increased by 94% to US$64m due to new syndication deals with Indian satellite broadcasters and sales in dubbed markets. Digital and home entertainment also grew 67% to US$46m largely driven by the performance in India and by growth in video on demand deals, IPTV, mobile and internet deals.

Overall, the rapid growth experienced in previous years from India due to increased global film releases year on year has slowed in the current year to 39% from 75% in 2008 - not to be sniffed at. Outside India, there was also growth across all territories.

With a three year track record, Eros announced it is considering a move to the Full List as well as a listing in India. If that happens, we think the wider investment audience who are able to buy the shares could see the price go through the roof. Buy.

Up we go again lelael. :-))

very nice, had a look how this was doing at lunchtime on iphone, was showing as 199 at that time, unfortunately it has pulled back a bit now, on one hand this is fantastic but I regret not buying more last week at 120, it almost seemed to easy. I think the lack of interest on here put me off as well !!

Lelael ,i couldnt buy a small amount online today,broker said there were very few on the offer this morning. I'm hanging on to mine...

Will hold for now and see what progress is made towards a full listing. I have followed this company since listing on aim but only got in at the beginning of June this year, 85% gain so far, so very happy.

Off we go again ...