Eros International Plc (NYSE:EROS) Q4 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 09:00 am ET


Eros International Plc (NYSE:EROS) Q4 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Eros International PLC's Fourth Quarter and Fiscal Year End 2020 Earnings 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 earning results 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 this 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. Good morning, everyone. Thank you for joining our call. Firstly, I want to highlight that we are expecting our merger with STX Entertainment, which was announced in April. We'll be closing later today within hours. The company will make a separate public announcement, announcing the details of the transaction closing. We are extremely excited about our future as a combined company and at the same time, very proud and grateful for all your support on our journey so far the at this point.

This quarter represents yet another important step into company's transformation from a traditional movie producer and syndicator of content with somewhat unpredictable revenues to an OTT platform with a strong mix of growing high-quality recurring revenues. Our paying subscriber base now totals 30 million, which represents a growth rate of 56% over a year. We believe that recent initiatives will not only increase the growth rate, but importantly, [Technical Issues] source of revenues into [Technical Issues]. While we expect the numbers of paying subscribers to continue to grow rapidly, we believe that innovative partnerships such as our tie-up with YouTube will lead to a considerable number of incremental D2C subscribers.

Outside of India, we are Apple's only Indian partner, and we have high hope for the success of this global service, which we benefit from each subscription as we continue to unlock markets. On Apple, we are currently live in USA, Canada, India [Technical Issues]. These initiatives will benefit revenues, earnings, free cash flow in subsequent years, and annualized benefit of these subscribers materialize. Elsewhere, our tie-ups around the world will also be additive to our earnings.

We have very high expectations from our tie-up with Microsoft Azure in providing a differentiated viewer experience for our subscribers. Some of the initiatives are very exciting and differentiated. Furthermore, our strategic technology relationship with Microsoft has accelerated by the global entertainment shift. We expect to be fully migrated to the new Azure infrastructure with a brand new technology stack in the next month. At the same time, we are laser focused on the R&D