| Financial Highlights |
| "� Turnover up 48.6% to US$66.4m (pro forma aggregated 2005-06: US$44.7m) |
| "� EBITDA before IPO costs up 57.1% to US$50.1m (pro forma aggregated 2005-06:US$31.8m) |
| "� Profit before tax, goodwill amortisation and IPO costs up 76.3% to US$32.5m (pro forma aggregated 2005-06: US$18.4m) |
| Operating Highlights |
| "� Successfully executed first phase of content and distribution consolidation |
| "� Enhanced content library through output deals, co-productions, acquisitions and talent tie-ups |
| "� Contractually agreed over 50 projects for release over the next 24 months |
| "� Established a distribution network across India to take advantage of growing domestic box office and released five films in India in the run up to March 2007 |
| "� Launched Eros Music label leveraged on existing home entertainment infrastructure |
| "� Leveraged catalogue and new films through strong television syndication deals with Sony Entertainment Television, B4U and Zee and many more channels globally |
| "� New Media exploitation deals agreed with Comcast, YouTube, Microsoft Online Spotlight, Intel Viiv, Mauj Telecom and OnCommand |
| "� Seeded the opportunity of Digital Cinema in B & C class towns in India |
| "� Ongoing distribution of Hollywood movies into India |
| Outlook Kishore Lulla, Chairman & Chief Executive, said: "Eros International is at an inflection point, having created the world's leading owner and distributor of Indian filmed entertainment. Our strong first full year results as a listed company give us confidence to forge a unique vertically integrated media company - focused on fast-growing Indian entertainment - with a strong position at the box office, in home entertainment and new media. The next development phase at Eros - coinciding with our 30th anniversary - will combine organic investment, strategic alliances and acquisitions to further extend our market leadership." Chairman and Chief Executive's Review This has been a most remarkable year for Eros International. Before I comment on our positive financial results, I would like to take a moment to thank the entire Eros team across our worldwide offices for their exceptional passion, dedication and loyalty, and for helping to realise the Eros vision. Our preliminary results announcement marks a very special occasion "� Eros' 30th anniversary. Over the course of this journey we have been instrumental in transforming a 'cottage' industry into a global media sector. We have taken the lead on expanding the business by operating a vertically integrated model. On July 4, 2006 we were proud to become the first company within the Indian entertainment sector to be listed on the London Stock Exchange, AIM Market. One year on, it gives me great pleasure to announce favourable results both in terms of financial performance as well as delivering on our strategic objectives. In recognition of our pioneering effort in bringing Indian cinema to international audiences, Eros was given the Honorary Award for its Contribution to Indian Cinema by the International Indian Film Academy Awards in June 2007. Eros was also honoured with the Eastern Eye Asian Business Award for 2007. Board Appointments Eros is also today announcing the appointment of Naresh Chandra to the main board as senior independent non-executive director. Mr Chandra has led a distinguished political career, including as Indian ambassador to the USA, and is Chairman of the advisory board of Coca Cola India Limited among other prestigious commercial appointments. Strategic Overview At the time of the IPO, we had set out to lead the first phase of consolidation in the highly lucrative but fragmented Indian entertainment sector, focusing on production and film distribution. I am delighted to report that we have delivered on our strategy as set out at the time of the IPO. Eros Pictures We have secured projects through acquisitions, co-productions, output deals and talent tie-ups with some prominent names in Bollywood including Venus, Sajid Nadiadwala, Anil Kapoor Films Company, Rose Movies, K Sera Sera, Big Screen Entertainment, Abbas Mastan and E Niwas to name a few. This secures clear visibility of the release pipeline for the next 24 months and beyond, as we continue to seek to aggregate further content in the current year. Eros Global Distribution As the international market leader over the past three decades, we quickly established our own successful cinema distribution network in India in Mumbai, Delhi, Calcutta and Bangalore. Being a global player allows us to take better advantage of the fragmented market. In quick succession we released Omkara, Salaam-E-Ishq, Eklavya and Namastey London globally which collectively grossed US$50 million. Our 2007-2008 slate of global films started with the release of Cheeni Kum to be followed by expected blockbusters- Partner, Gandhi My Father, Hey Baby, No Smoking, Sunday and 123, to name a few. |
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