After falling 16.2% overall since a March 9 GeoInvesting short report that raised chatter about liquidity concerns, India film producer Eros International (NYSE:EROS) says it has extended the maturity of its $85M revolving credit facility.
The maturity has been pushed out from April 1, 2017 to Sept. 30, 2017. It's also working on "multiple long-term refinancing options" to replace the revolver.
"The company’s long term shareholders continue to stand in support," Eros says, pointing to strong fundamentals including its new release slate, its back catalog and growth in new markets such as China.
Shares have turned for the worse again this afternoon, -3.9% to drop below the $10 mark.
Indian film producer Eros International (NYSE:EROS) is off 6.4% as bearish investors raise new liquidity questions around the postponement of Sarkar 3, a high-profile film fronted by Bollywood legend Amitabh Bachchan.
The sequel was set to release April 7, and has been delayed to May 12. A Web report attributes the move to a cash crunch at Eros: “According to sources #sarkar3 can't release on 7th April coz Eros is not paying balance 23Cr to producers" -- 23 crore in rupees, or about $3.5M.
In a tweet, Eros has said the postponement was a mutual decision between themselves, Bachchan, director/producer Ram Gopal Varma and Save.
Share volume is heavy on the NYSE, about to surpass standard full-day volume of 339,800 shares this morning.
Eros International (NYSE:EROS) is up 1.3% in a bit of a rebound after it issued a statement on postponing a dollar bond offering, and worked to rebut a short report that drove shares down.
Shares fell 12.6% as Dan David of GeoInvesting described "explosive" evidence alleging fraud at Eros, suggesting the company is channeling money through dummy production deals.
In a statement, Eros said it was postponing an "opportunistic" bond offering due to "the recent change in credit market conditions." Since the offering was to refinance existing debt, Eros says it doesn't believe the move has any effect on liquidity.
“Yesterday, a short-selling website republished certain allegations made in a lawsuit from an anonymous person about purported events that occurred several years before Eros International Plc went public on the NYSE," Eros says. "The lawsuit and all of its allegations are completely baseless and without merit, and the court is currently considering its dismissal."
Exhibitor stocks are notably higher a day after AMC Entertainment (AMC +0.3%) kept its buying binge going with an acquisition of Nordic Cinema Group.
Cinemark Holdings (CNK +1.7%), Regal Entertainment (RGC +1.5%), Eros International (EROS +2.6%), Marcus Corp (MCS +1.1%) and Reading International (RDI +0.4%) are all higher off the renewed focus on the sector. IMAX (IMAX +2%) is also making gains.
Eros International PLC (NYSE:EROS) announced that Eros Now has entered into a strategic partnership in India with Paytm to enable Eros Now subscribers to make easy and hassle free payments using the e-wallet service.
Commenting on the association, Rishika Lulla Singh, CEO, Eros Digital said, “E-wallets are becoming vastly popular, especially with India’s youth, as they provide on-the-go, convenient payments. Post demonetization in India, there has been a high surge in mobile and digital payments as we move towards a digital economy along with a rise in internet penetration and smartphone usage; we are excited to join hands with India’s largest mobile payments and commerce platform, Paytm to provide safe, transparent, and easy payments. This association furthers our strategy to continue providing a seamless experience and endless entertainment to our two million paid subscribers and over 55 million registered users worldwide”.
Eros Now, on-demand entertainment platform of Eros International Plc (NYSE:EROS) announced a distribution partnership with Vodafone India, one of India’s leading telecom service providers, for integration with Vodafone Play.
This partnership will enable users of Vodafone Play to gain access to Eros Now’s premium Bollywood content offering thousands of new and classic Bollywood movies including its latest blockbusters.
Speaking on the collaboration, Rishika Lulla Singh, CEO Eros Digital said, “An important part of our digital strategy is to be platform-agnostic and we are delighted to partner with Vodafone, a leading player in its space. Joining forces with Vodafone, a prominent telecom service provider, offers us an opportunity to further strengthen our customer reach.”
Indian-film firm Eros International (NYSE:EROS) is down 1.9% today following a surprise loss in its fiscal Q2 earnings report as it worked through a lighter slate.
Revenues slipped 27% and operating profit fell 79% to $5.5M. Meanwhile, net income swung to a $1.4M loss from a year-ago $11M profit.
The company had only two high-budget films in the quarter, vs. three a year ago (and one of which was its highest-grossing film for the fiscal year, Bajrangi Bhaijaan.)
Eros Now, its on-demand video service, has hit 55M registered users and 1.32M paid subscribers. With its having hit the years' target of 1M paid subscribers early, in Q1, the company is still pushing for 2M paid subs by the end of fiscal 2017.