Eros Regulatory News (EROS)

10 February 2012

Eros International plc

Trading Update and Indian Subsidiary Results

Eros International Plc ("Eros" or "the Group"), a leading global company in the Indian film entertainment industry, announces a trading update as its subsidiary Eros International Media Limited ("EIML") announces its consolidated financial results for the third quarter and nine months ended 31 December 2011.

Group Trading Update

The Group experienced a strong third quarter and expects results for the year ending 31 March 2012 to be in line with market expectations.

During the quarter, the Group benefitted from three high profile theatrical releases: 'RA One', 'Rockstar' and 'Desi Boyz' which generated significant cash flow, with 'RA One' breaking several box office records.

The Group has also recently announced a new US$150 million five year revolving credit facility with Lloyds Bank Corporate Markets, Royal Bank of Scotland, Citibank N.A, London Branch and UBS, Singapore Branch. This refinanced existing indebtedness and has strengthened Eros' balance sheet and provided long-term debt facilities.

Operationally, the Group has continued its progress in digitizing its 2,100-strong film library which it expects to complete during 2012. Eros is also delighted to announce that its theatrical releases 'Zindagi Na Milegi Dobara', 'RockStar' and 'RA.One' received a total of 34 awards in three recent awards ceremonies, including the 2012 FilmFare Awards where Eros releases were successful in the 'Best Film' and 'Best Actor' categories.  

Eros has also increased the breadth of experience and corporate governance credentials of its Board with the appointment of Michael Kirkwood as a Non-Executive Director on 6 February. Mr. Kirkwood brings wide-ranging expertise and significant experience through his 31 year career with Citigroup, where he was most recently UK Country Head and Chairman of the Corporate Bank, and a variety of other senior roles.

The recent major fluctuations in exchange rates, as the US Dollar strengthened against the rupee, have impacted Eros since its half year. In addition, we note that there has also been a slight reduction in expectations for India's economic growth. However, growth rates in the Media & Entertainment sector remain robust, and despite the unfavourable foreign exchange effect, Eros' actual and constant currency performance remains consistent.

The Group looks forward to the remainder of the financial year with confidence.

EIML Results

The financial (under Indian GAAP) and operating highlights of EIML for the third quarter and nine months ended 31 December 2011 are set out below. A copy of the full release will shortly be available at www.erosplc.com and the NSE and BSE websites.

Quarterly Financial Highlights

·      Revenue up 46%% to Rs. 4084.2 million (Q3 2011: Rs. 2,797.5 million)

·      Profit after tax up 48% to Rs. 650.9 million  (Q3 2011: Rs. 439.9 million)

·      Full year financial performance set to be in line with expectations

Operational Highlights

·      Strong box office performance of Hindi movies including 'Ra One', 'Rockstar, and 'Desi Boyz'

o  Ra One recorded the largest gross box office receipts, for the first five days of release, in Indian cinema history, of Rs. 240 crore gross worldwide

·      Three out of the top five grossing films at the Indian box office in the quarter ended December 2011, were Eros International co-productions

·      Continued investment in content

o  Future film release slate enhanced further

o  High profile Hindi future movie releases such as 'Housefull 2', 'Cocktail', 'Khiladi 786', 'Hum Se Pyar Kar Le Tu' as well as regional titles

Kishore Lulla, Executive Chairman and Chief Executive Officer, commented: 

"I am delighted to announce that the second half of the financial year at Eros is continuing in line with expectations, generating substantial cash flow from our recent theatrical releases reinforcing the visibility of revenue for 2012-13 and beyond. Our recent refinancing and strengthened corporate governance with the appointment of Michael Kirkwood, further strengthens the Board and leaves Eros very well positioned to continue to deliver continued growth."

About Eros International Plc

Eros International Plc

Jamie Kirkwood - Head of Investor Relations & Special Projects

T: +44 (0) 20 7258 9906

Evolution Securities

Nominated Adviser

Jeremy Ellis

T: +44 20 7071 4300

Investec Bank Plc

Joint broker

Patrick Robb / Carlton Nelson

T: +44 (0) 20 7597 5000

Peel Hunt LLP

Joint broker

Richard Kauffer / Dan Harris / Andy Crossley

T: +44 (0) 20 7418 8900

Pelham Bell Pottinger

Nick Lambert / Victoria Geoghegan / Elizabeth Snow

T: +44 (0) 20 7861 3232

About Eros International Plc

·      Eros co-produces, acquires and distributes Indian language films, in multiple formats worldwide

·      In 2006, Eros became the first Indian media company to list on the AIM Market of the London Stock Exchange

·      In October 2010, Eros International listed its Indian subsidiary Eros International Media on the BSE & NSE in India

·      Eros operates in over 50 countries, with offices throughout India, the United Kingdom, USA, UAE, Singapore, Australia, Fiji and the Isle of Man