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.

http://in.reuters.com/article/bollywoodNews/idINIndia-40763420090702
Good news for Eros

Eros International plc (the 'Company')

Trading Update

Potential Indian IPO of Eros International Media Limited ('Eros India')

Eros International plc (AIM: Eros), the leading integrated studio operating a global business of sourcing content mainly within the Indian filmed entertainment space across multiple languages and distributing the content worldwide across formats like cinemas, television, home entertainment and digital new media, is pleased to announce a trading update for the period ended 30 September 2009.

The Company has experienced a strong second quarter of the financial year and continues to trade in line with management's expectations. Since the resolution with the multiplexes as announced in June 2009, the Company began releases from July 2009 onwards and has already had two major successes, namely Kambakkth Ishq and Love Aaj Kal as previously reported, and several regional films including Me Shivaji Raje Bhosale Boltoy, Tera Mera Ki Rishta and Kandasamy. TV and digital revenues continued to be strong. Cash generation during the period was in line with expectations taking into account the theatrical release schedule and net debt at 30 September 2009 was at a similar level to 31 March 2009. Given the strong release schedule and anticipated cash generation in the second half, net debt is expected to show a material reduction by the financial year-end.

As part of its overall strategy to strengthen its balance sheet in anticipation of future corporate activity, the Company has firmed up its plans to list Eros International Media Limited, its wholly-owned subsidiary company in India, on the Bombay Stock Exchange (BSE). It has appointed Enam, Kotak and RBS (Royal Bank of Scotland) to act on the Indian IPO and it is expected that the transaction will conclude within the current financial year ended March 2010. It is expected that the intended IPO and the recent appointment of Mr A.P. Parigi as Group CEO for the Indian operations will drive the group's growth and consolidation within India. Mr Naresh Chandra will be appointed as the Non-Executive Chairman of the Indian Board. It is currently intended that any new funds raised by Eros India in the Indian IPO will not result in a dilution of the Company's ownership in excess of 25%

patiience is a virtue, movement at last.

up 25% last week, looks like more to come this week, before the Indian IPO. 290 now.

Shares jump as EROS International gives big hint on USA Listing

US listing finally happening although slightly disappointing the AIM listing goes. I'm sticking with it across the pond as further growth and more appetite to follow IMO.

Sharp move higher on US IPO price range annoucement ($15-$17 each). Potential for much stronger rise here.

1 for 3 consolidation proposed, which I calculate the IPO range to be c. 310p-350p equivlalent, depending what GBP/USD rate you use.

So we've picked up some since that earlier annoucement, currently up 17% to 297p. Still a lot more value here before the IPO in my opinion. Should be heading to a minimum of 310p for fair value?

Heading higher again though would appear to be further upside ahead of US IPO and AIM delisting. I expect to see greater appetite in the US with greater alignment with Hollywood.