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Eros - Starts to open Indian cinemas

August 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • EROS
The shares went into orbit after Eros, one of our New Yearrecommendations, announced mesmerising results for the year to 31 March.Turnover in FY07 was up 40% to US$66.4m, reflecting the growth intelevision revenues, the launch of the Indian cinema distributionoperation and the emergence of new media earnings. Pretax profit roseby US$20.1m to US$32.5m. Earnings increased from 23.3 cents to 31.2cents.As we wrote in our January profile, Eros’ mainstay is theinternational sale of Bollywood films. Usually Eros buys the rights tonew releases from a variety of independent producers at the postproduction stage, typically buying the international rights (ex India)to some 25 or 30 films a year. The reason for the IPO exactly 12 mon ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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