NEW YORK--(BUSINESS WIRE)--Eros International Plc (NYSE: EROS) (“Eros” or “the Company”), a leading global company in the Indian film entertainment industry, today provided a further response to the anonymous campaign that is aimed at spreading false and malicious information about the Company in an apparent effort to negatively impact the Company’s stock price. Eros offered the following statement:
On November 11, 2015 the management team attended the Wells Fargo Technology, Media & Telecom Conference in New York, where it did not disclose any new information to the market and only reinforced its business fundamentals. No statement was provided concerning the Alpha Exposure article dated November 10, 2015 which made further baseless allegations about the Company’s core business, its content library and film slate.
The Company’s new release films slate and its content library is the core of the business built over the last three and a half decades and not built overnight. The Company began as international distributors of Indian films, and transformed into the global integrated studio model in 2006 after the Company’s AIM (London Stock Exchange) IPO. In 2007, the Company acquired the Tamil film company, Ayngaran and have since then systematically scaled the business to include Hindi as well as other regional language films.
The Company’s new release film slate goes through a thorough review every quarter as part of its earnings release where it discloses the number of films by high, medium and low budget films as well as by language breakdown between Hindi and regional.
As part of the NYSE IPO process in November 2013, the Company's entire film library, and not just the new release slate tables, went through full due diligence in which each and every agreement was vetted. This same process was repeated for the follow-on equity offering in July 2014. Every year when the Company files its Form 20F, the Company and its auditors review the entire slate for that particular year. Further, the Company has never claimed to produce all the films it releases. The Company’s disclosures clearly demonstrate that it co-produces or acquires films for distribution. All these filings are available on the SEC's EDGAR database as well as on the Company's website.
The Company has defined in these filings very clearly the definition of high, medium and low budget films reproduced below from our latest filing for FY 2015, Form 20F Page iv, filed July 8, 2015:
“High budget” films refer to Hindi films with direct production costs in excess of $8.5 million and Tamil as well as Telugu (regional language) films with direct production costs in excess of $7.0 million, in each case translated at the historical average exchange rate for the applicable fiscal year. “Low budget” films refer to both Hindi, Tamil and Telugu (regional language) films with less than $1 million in direct production costs, in each case translated at the historical average exchange rate for the applicable fiscal year. “Medium budget” films refer to Hindi, Tamil and Telugu (regional language) films within the remaining range of direct production costs. With respect to low budget films, references to “film releases” refer to theatrical releases, or for films that we did not theatrically release, to our initial DVD, digital or other non-theatrical exhibition.
The Company has been very clear and transparent with analysts and investors on the categorization of films. Conclusions drawn purely based on Indian box office reports are grossly misleading. Such reports are compiled using informal informational sources that are not as reliable as Rentrak internationally, only include theatrically released Hindi films in India and no non-theatrical Hindi films and entirely exclude regional language films, thereby creating a distorted picture. A list of the Company’s Fiscal Year 2015 and Fiscal Year 2014 film release slate as well as a selection of its high profile films from the library are available on the Company’s website (www.erosplc.com).
As of September 2015, based on Rentrak data Eros’ market share in the UK this year is an impressive 68% with a four year average of 44%, and market share in USA is 73% as of September 2015 with a 38% four year average. In addition, this information is reported in all of the Company’s presentations and the investor day decks which can be validated by anyone independently which gives a credible benchmark for theatrically released films. The Company is committed to proving the best in Indian entertainment and our stellar slate this year and increased market share dominance is a true testament to our strategy.
The Company is very confident in its fundamentals and content is integral to the business and it believes content ownership is the main competitive advantage. The Company has not only released the reported number of films but we also on track to scale the number of films to over 100+ films in the next 3-5 years between Hindi, Tamil, Telugu, Marathi, Punjabi, Kannada, Malayalam, Bengali and many more. The Company can confirm that it already has at least a few films in each of these languages under production and does not always name all the films in its forthcoming film list.
We thank our shareholders for their continued support and patience through this period and the faith they have placed in us. The Company expects not to have to issue further statements until our results release and earnings call, which it expects to announce shortly. We are confident that we will rise above this difficult time and emerge as winners in the long run.
About Eros International Plc
Eros International Plc (NYSE: EROS) is a leading global company in the Indian film entertainment industry that acquires, co-produces and distributes Indian films across all available formats such as cinema, television and digital new media. Eros International Plc became the first Indian media company to list on the New York Stock Exchange. Eros International has experience of over three decades in establishing a global platform for Indian cinema. The Company has an extensive and growing movie library comprising of over 3,000 films, which include Hindi, Tamil, and other regional language films for home entertainment distribution. The Company also owns the rapidly growing OTT platform ErosNow. For further information please visit: www.erosplc.com
SAFE HARBOUR STATEMENT:
"These materials contain statements that reflect Eros International PLC’s (the “Company”) beliefs and expectations about the future that constitute “forward – looking statements” as defined under U.S. federal securities laws. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “forecasts”, “plans”, “prepares”, “projects” “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include, but are not limited to, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, business development, the markets in which the Company operates, expected changes in the Company’s margins, certain cost or expense items as a percentage of the Company’s revenues, the Company’s relationships with theater operators and industry participants, the Company’s ability to source film content, the completion or release of the Company’s films and the popularity thereof, the Company’s ability to maintain and acquire rights to film content, the Company’s dependence on the Indian box office success of its films, the Company’s ability to recoup box office revenues, the Company’s ability to compete in the Indian film industry, the Company’s ability to protect its intellectual property rights and its ability to respond to technological changes, the Company’s contingent liabilities, general economic and political conditions in India and globally, including fiscal policy and regulatory changes in the Indian film industry and other factors discussed in the Company’s public filings. By their nature, forward-looking statements involve known and unknown risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as of the date they are made and are not guarantees of future performance and the actual results of the Company’s operations, financial condition and liquidity, and the development of the markets and the industry in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in these materials. The forward-looking statements in this presentation are made only as of the date hereof and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of current or future events or otherwise, except as required by law or applicable rules. In addition, even if the results of operations, financial condition and liquidity, and the development of the markets and the industry in which the Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors, many of which are beyond the Company's control, could cause results and developments to differ materially from those expressed or implied by the forward-looking statements.
The Company has filed a form 20-F with the U.S. Securities and Exchange Commission, which includes (under the caption “Risk Factors”) information concerning the factors that could cause the Company’s results to differ materially from those contained in the forward-looking statements. You may obtain a copy of this document by visiting EDGAR on the SEC website at www.sec.gov."