Eros International PLC A (EROS) research, news, and more from GeoInvesting

Company description

Wed, 09 Jul 2014 04:00:00 GMT

Eros International PLC, together with its subsidiaries, co-produces, acquires, and distributes Indian language films in various formats worldwide. The company distributes its film content across various distribution channels, such as theatrical, which includes multiplex chains and stand-alone theaters; television syndication that comprises satellite television broadcasting, cable television, and terrestrial television; and digital platforms, which consist of Internet protocol television, video on demand, and Internet channels, as well as on-demand entertainment portals through Internet-enabled devices. It also distributes its film content through physical formats, such as DVDs and video compact discs (VCDs) in hotels and on airlines, and for use on mobile networks; and distributes and licenses content on physical media, including on Blu-ray and DVDs internationally, as well as on VCDs and DVDs in India. In addition, the company distributes its film content to retail chains and Internet platforms, as well as to wholesalers and retailers; and licenses content to third party distributors internationally to provide content dubbed into local languages for non-South Asian audiences. Further, it is involved in direct sales to corporate customers who bundle the company’s DVDs or VCDs with their products for promotional purposes. It has rights for approximately 2,300 films in its library; and holds digital rights for approximately 700 additional films. Additionally, the company operates as a music publisher for third party owned music rights. It provides music content directly, as well as through third party platforms and licensing deals; and through streaming services, digital streaming, CDs, and publishing/master rights licensing. The company was founded in 1977 and is based in Douglas, the United Kingdom.

Research

Fri, 28 Jul 2017 17:37:39 GMT

Eros Earnings Report Underwhelms, Confirms FG Alpha Management’s Critique

GeoInvesting contributor FG Alpha (FG) has written extensively on EROS over the last 6 months, claiming the company was in a liquidity crisis and raising numerous red flags as to why they believe the company’s stock should be avoided. This morning, EROS reported an extremely underwhelming quarter, missing estimates on both EPS and revenue. The company reported a decrease in net income, an increase in DSO, and sales falling in every geography aside from the nebulous (and often criticized) “Rest of World” segment. In addition, the company announced they would be filing a shelf in order to possibly issue equity, but FG doesn’t believe the SEC will allow the shelf to be declared effective while the company is under SEC investigation. FG believes that the filing of the shelf, combined with recently selling off portions of its subsidiaries, help further the case that the company could be in a liquidity crunch. FG predicted months ago that the company would have no choice but to resort to dilutive equity issuances in order to fund its business.

Research

Tue, 18 Jul 2017 15:13:13 GMT

Eros Update by GeoInvesting Contributor FG Alpha

Only hours after GeoInvesting contributor FG Alpha’s report questioning EROS’ liquidity last week, the company responded by selling more of its overseas subsidiary and taking on senior secured debt at a 13.75% interest rate that FG Alpha believes is indicative of the company’s risk profile.

This morning, FG Alpha has released yet another update on Eros International Plc (EROS), detailing how continued subsidiary sales/pledges and the addition of new senior secured debt at 13.75% further its case that the company could be facing a liquidity crisis. Among the key points in this morning’s article by FG Alpha are:

Eros continues to sell its stake in its main subsidiary
Eros appears to have just lost majority voting control in its operating subsidiary
Eros just issued new senior secured debt carrying an aggressive 13.75% interest rate

Please read FG Alpha’s latest update on EROS here.