"Overall FY2017 will see an exciting movie collection for Eros of over 65 filmsby compelling stories in Hindi and other regional languages making it the biggest futureslate by any studio in India."
As I write to you Eros International is emerging stronger across Indias vast andgrowing entertainment landscape building on its time-tested leadership. Our idea ofleadership is all-encompassing. It is evident not only in the way we manage our companybut also the role we play as a catalyst for change in our industry. We achieve thisthrough a keen analysis of developments in the media markets around the world andincorporating global best practices in all we do to build a better stronger Eros. Forover three decades Eros has been a pioneer in setting the global stage for Indianlanguage cinema. Equipped with a strong balance sheet scale a large content library anda well-developed distribution network Eros will continue to capitalise on newopportunities. Our operations involving the distribution of new films theatricaltelevision and digital channels along with monetisation of our extensive film libraryprovides us with diversified revenue streams and a de-risked business model.
Our marketing and distribution capabilities allow us to reach audiences across Indiaand over 50 countries in the original dubbed or sub-titled form. Together with ourstrength in content this enables Eros to sustain its strong leadership in Indiasfilmed The industry has witnessed significant back of diversified content ideas widerreleases and aggressive promotions by production houses. Factors such as rapidurbanisation penetration of multiplexes in Tier
II and III cities increasing sophistication in production and marketing of films andviewers appetite to embrace varied content are all expected to be a catalyst forfuture growth. Additionally the regional film industry is rapidly developing and offers ahuge potential for growth. As a result film revenues are expected to grow at CAGR of
10.6% over the period CY2015-20.
I am happy to report yet another strong set of financial results for FY2016. We endedthe year with record revenues of Rs 1603.55 crores and healthy profitability.
The most encouraging highlight was that we generated freecash Rs 300 crores in FY2016and strengthened our balance sheet by bringing about working capital efficiencies. trongperformance of our film slate s Ourresultsreflectthe with complete domination of the boxoffice charts with runaway hits such as Bajrangi Bhaijaan Bajirao Mastani Tanu Weds ManuReturns Welcome Back and others. The box office performance was complemented by strongtelevision ancillary and overseas revenues. The quality and performance of our films isfurther validated by the
150+ awards that we have won in 2015 earning Eros the honour of Studio of theYear. We continue to take pride in our green-lighting process and build on ourportfolio strategy of filmsacross varied budgets and languages backed by strong pre-salesto minimise the risk profile of our business.
Digitisation of cinema screens has changed the landscape of Indian cinema in severalways. At Eros we have leveraged this trend to ensure faster consumer reach and tightercost control and further consolidate our leadership position.
Eros continues to lead innovations in the industry and our initiative of TrinityPicturesIndiasfirstfranchisefilm label is progressing well with 4 films expected toenter into production including 2 Indo-China film productions.
We believe that with these initiatives in the years to come we will be able to developnew and non-traditional revenue streams such as gaming merchandising and opening newmarkets such as China for theatrical releases. Equally Eros Now the entertainment portalowned by our parent company Eros International Plc. is growing well and we are proud tohave garnered over 44 million registered users.
At Eros we remain committed to serve our audiences better; and in this context I wouldlike to thank the extraordinary effort of our employees and partners. industry. We areentering FY2017 with an exciting collection of over 65 content driven Eros films in Hindiand other regional onthe languages making it the biggest future slate by any studio inIndia. We have already entered into pre-sales of satellite rights for Housefull 3Dishoom Baar Baar Dekho Rock On
2 Banjo amongst others along with some regional films which give us a good revenuevisibility and mitigate risk.
I am confident that with our clear strategic focus and our scaled up and differentiatedbusiness model we will continue to deliver encouraging results in the future. On behalf ofour entire leadership team I thank all our shareholders and associates for theircontinued support.
|Sunil Lulla |
|Executive Vice Chairman & Managing Director |