OTT subs drive strong Eros International half year | Major Businesses | Business
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Global Indian film and digital studio Eros International has announced sequential revenue growth, improving margins and a solid capital structure for its second quarter of the 2019 financial year.

eros intl logo 22 Feb 2018For the second quarter ended 30 September 2018, Eros reported gross revenue of $72.2 million, a year-on-year increase of 10.4%, and adjusted EBITDA of $24.8 million, compared with $17.2 million in Q2 FY2018, a 44.2% annual rise. Adjusted EBITDA margin expanded to 39.1%, up 11.9 percentage points on an annual basis. 27.2% in Q2 FY2018.

At the heart of the revenue rise was the Eros Now over-the-top video service whose paying subscribers reached 13.0 million, an impressive 251.4% rise year-on-year and up 28.7% since last quarter. As of September 30, 2018, Eros Now has more than 128 million total worldwide registered users. In the second quarter Eros Now premiered 16 films in as well as 380 original short-form content pieces, including short films, as well as premiering two original series, Side Hero and Smoke.

In the quarter, Eros Now announced a partnership with iQiyi, the largest Chinese online video streaming service becoming the first South Asian OTT player to penetrate the Chinese digital space. Eros released 17 films in Q2 FY2019 — four medium budget and 13 low budget films — compared with seven films in Q2 FY2018 when it launched two medium budget and five low budget films.

Commenting on the quarter, Eros group executive chairman and chief executive officer Kishore Lulla said: “The media market in India is robust and growing, driven by rapid technological and socio-economic changes. We benefit from all areas of this growth, from ticket sales, digital downloads and advertising to pay television. While digital continues to be the main driver of our future growth, it’s important to remember that the television market in India is still growing at a strong pace, forecasted at cerca 15% for the next few years, which provides strong tailwinds to our TV syndication business.”