Eros International Plc (NYSE:EROS) Q4 2019 Earnings Conference Call - Final Transcript

Jul 15, 2019 • 08:30 am ET


Eros International Plc (NYSE:EROS) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen. And welcome to the Eros International Plc's Fiscal Year End 2019 Earnings Conference Call. This call is being broadcast live on the internet and a replay of the call will be available on the company's website.

This morning, the company published its earnings press release on its website The company would like to remind everyone listening that during this call, it will be making forward-looking statements under the Safe Harbor provision of the federal securities laws. The company's actual results may differ materially from those projected under forward-looking statements.

During the call, the company will also discuss non-GAAP financial measures and talking about its performance. You can find a reconciliation of these measures to the GAAP financial measures in the company's press release.

I would now like to turn the call over to Mr. Kishore Lulla, Executive Chairman and CEO of Eros International Plc. Please go ahead, sir.

Kishore Lulla

Good morning, everyone. Thank you all for joining today's earnings call. We are pleased to share with you a very strong set of results cementing over 40 years of market leadership, positioned solid business fundamentals and continued growth in Eros now. This year results show that the business has evolved significantly from last year with 45% of combined revenue, generated from digital and ancillary business, and adjusted EBITDA margins expanded to 38%. This is truly a testament to our transformation, as we transition to a digital business driven by Eros Now growth.

As we continue to develop our digital platform and adapt to the dynamic global media landscape we operate in, I wanted to take the opportunity to reiterate our milestones along this journey. At the core of our company lays the ability to deliver premium Indian film entertainment to the masses with unparalleled distribution capacity. Almost 20 years ago, we developed the first vertically integrated film studio model in India, it's a testament to our leadership and DNA that we have been able to maintain and grow our market share in this rapidly changing industry.

Furthermore, Eros films have been amongst the most successful Indian films released in China, notably Andhadhun released in April 2019, which is now the third highest grossing Indian film ever to be released in China collecting over $43 million. Our recent successful releases in China mark our entry into significant market. We look forward to continued exposure in this region as we reach out to larger audiences in other countries. We are also blessed with one of our deepest and the richest Indian content libraries in the world.

Over the last decade Eros has been responsible for 36 of the top 10 -- 110 highest grossing Indian language films at the box office. Even in the digital age, premium content is still immensely available, we pioneered the first OTT studio model in India over seven years ago, backed by our rich library and forthcoming slate. Our industry relationship spanning over 40 years allow us to access to the best talent across