Eros International Plc (NYSE:EROS) Q2 2020 Earnings Conference Call - Final Transcript

Nov 15, 2019 • 08:30 am ET


Eros International Plc (NYSE:EROS) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Eros International Plc's Second Quarter Fiscal Year 2020 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 provisions 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 in 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

Thank you very much. Good morning, ladies and gentlemen. In our previous earnings call, Q1 FY20 we spoke in detail on how stories are global and the quality of the Indian production is very well suited to travel the world. Our experience over the period of 40 years in taking Indian cinema across the world and over the last seven years with Eros Now has proven to the world that we are able to penetrate audiences with our stories. Case in point being our serious surge in China over the last 18 months with the two theatrical releases and two major Eros Now deals with iQiyi in 2018 and Wasu to name a few.

With this earnings call, would like to start the trend of having a theme to each of these calls to provide context to the strategic thinking of the Group. The content is not something we will necessarily only deliver over the period of the next few months, but it is something we are working on already, but going to make serious investment in the resources to build for the next 18 months. This theme for the earnings call would be entertainment revolutions in the middle India. People targeting 500 million users. While we spoken on the promise of the Eros in the international market, the next real surge of the Internet users is going to come in from the partially connected to the unconnected Indians living in the middle India and outside of the Top 10 to 12 English speaking cities. According to the latest KPMG report, the next billion users, the ruler Internet population in India has had year-on-year growth of 60%. This is also the quarter where in the digital cable subscriber base fell from 75 million to 55 million and the same quarter, we had two announcements of the largest telco players in the world Jio Gigafiber and Airtel Xstream launch of their direct-to-home digital services. All of the directional skews of the growth of the telcos subscribers launch of the home entertainment, home Internet services, growth of smartphones