Market Overview

Eros International Plc Reports Fourth Quarter And Fiscal Year 2017 Results

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Eros Now triples its paying subscribers from a million to 2.9
million in just 15 months

EBIT increased by 16.8% to
$39.7 million

Eros International Plc (NYSE:EROS) ("Eros" or "the Company"), a leading
global company in the Indian film entertainment industry, today reported
its quarterly financial results for the three and twelve months ended
March 31, 2017.

Key Highlights

  • As of June 2017, Eros Now paying subscribers increased by 38% to 2.9
    million as compared with 2.1 million paying subscribers as of March
    2017.
  • Eros' library for digital film rights stands at over 10,000 films,
    with nearly 50% owned in perpetuity. This represents one of the
    largest offerings of Indian content and significantly boosts the Eros
    Now offering.
  • Reduced its Revolving Credit Facility from $123 million to $85 million
    in fiscal 2017 and since then have set aside approximately $40 million
    to pay it down further and bring it to around $45 million.
  • Not including the $40 million set aside for the RCF, Eros has over
    $112 million of cash on balance sheet, availability under existing
    lines of credit and access to capital markets and the company remains
    well-capitalized and able to invest in future growth.
  • Eros now has long-term contracts in place with Idea, Vodafone, BSNL
    amongst other telecom operators.
  • Eros Now partnered with IIFA (International Indian Film Academy) to be
    the first exclusive digital platform to air the awards weekend to its
    millions of subscribers worldwide
  • Eros continues to expand global presence and reach with co-production
    deals signed in China and Turkey. Indo-China co-productions are slated
    for release FY18-19.
  • Catalogue sales have increased meaningfully in the period and
    contributed to its profitability and strong margins.
  • EBIT increased by 16.8% to $39.7 million, compared to $34 million in
    the prior year period. EBIT margin expanded to 15.7% from 12.4% in
    prior year.
  • Revenues decreased by 7.8% to $253 million, compared to $274.4 million
    in fiscal 2016.
  • Adjusted EBITDA decreased by 21.4% to $55.7 million, compared to $70.9
    million in fiscal 2016.
  • Net income decreased by 13.5% to $11.5 million, compared to $13.3
    million in fiscal 2016.

Despite releasing a significantly lower number of films compared to last
year and specifically fewer high and medium budget Hindi films compared
to fiscal year 2016, mainly due to impact and after-effects of Rupee
demonetization, the Company delivered reasonably steady revenues. This
was achieved through a combination of bundled pre-sales strategy which
helps us de-risk our business as well as effective monetization of our
library and a strong regional film strategy during the year. Eros'
Indian subsidiary, Eros International Media Ltd, signed a significant
television syndication multi‐film deal with Zee in Q4 FY17, locking in
pre-sales for some of the film slate of FY 2018.

A reconciliation of the non-GAAP financial measures discussed within
this release to our GAAP operating results are included at the end of
this release. See also "Non-GAAP Financial Measures."

Management Comments:

Jyoti Deshpande, Eros' Group Chief Executive Officer and Managing
Director said:

Our Fiscal 2017 financial results reflect the flexibility and robustness
of the Eros business model wherein we are able to offset slate
volatility as well as impact of extraneous market factors beyond our
control with steadily increasing high margin catalogue revenues.

Secondly it reflects our financial strength and stability where in
without raising any significant external debt or equity, we not only
paid down the RCF significantly but also funded our ongoing future slate
as well as Eros Now catalogue purchases and originals and still have
around $115 million of cash balance after all that. Over $200 million is
already invested in the ongoing slate. While we are in advanced stages
of negotiations for a debt refinancing deal as well as expect to file a
shelf for a potential capital raise soon after this earnings, even if
any of these are delayed we are already well capitalized and have enough
cash to continue to grow the business in the short to medium turn.

Peak investments in Eros Now like strengthening the catalogue have
already taken place so now we can expect to reap from those investments
with extraordinary growth ahead of us. The upside from new markets like
China, investments for which are already built into our normal capex can
also result in windfall gain in the forthcoming fiscals. Our shareholder
support has always been strong and we remain committed to staying
focused on consolidating our market leadership position and enhancing
the shareholder value.

Prem Parameswaran, Group Chief Financial Officer and President of
North America also commented:

We believe these are a strong set of financial results in the context
that they were delivered. We have further reduced our net debt by close
to a further $ 40 million post balance sheet. We have collected over $25
million of fiscal 2017 trade receivables post balance sheet. We continue
to pursue refinancing and capital market transaction and are confident
we will go back to being free cash flow positive in fiscal 2018 as we
were in fiscal 2016.

Operational Highlights as of March 31, 2017

Eros announced an industry-leading film production pipeline of more than
50 films across eight languages involving over 40 directors. The Company
has always thought of ourselves as a content company and have always
been committed to growing the India regional film industry. To this
effect, its Indian subsidiary, Eros International Media Ltd, has
partnered with Phars Film, UAE's largest film distribution and
exhibition network to jointly co-produce and distribute Malayalam films
in respective local territories, where each enjoys a dominant market
share. The Company is also pleased to announce two Indo-Turkish
co-productions with Pana Film, one of the largest Turkish film studios
for Indo-Turkish co-productions. Original stories blending Indian and
Turkish cultures will be conceptualized and developed by Eros' in-house
writers along with top Turkish writers, and both films will be
bilingual. This will expand and deepen its presence into Turkey, the
Middle East and North African regions.

Eros continues to expand its geographical monetization canvas. With the
support of the Indian Government and using its position as a leading
overseas distributor of Indian film content, Eros has continued
exploring and opening up new markets. Eros is in the process of
releasing its recent offering Munna Micheal in Russia.

During the FY2017, the Company released a total of 45 films including 5
high budget, 10 medium budget and 30 low budget films as compared to a
total of 63 films including 6 high budget, 16 medium budget and 41 low
budget films during the FY2016. Major releases for FY 2017 included:
Housefull 3 (Hindi), Ki & Ka (Hindi), Dishoom (Hindi), Baar Baar Dekho
(Hindi), Rock On 2 (Hindi), Neel Batte Sannatta (Hindi), Happy Bhaag
Jayegi (Hindi), Banjo (Hindi), Kahaani 2 (Hindi), Sardaar Gabbar Singh
(Telugu), Janata Garage (Telugu), 24 (Tamil), White (Malayalam), & Zara
Hatke (Marathi), Chaar Sahibzaade 2 (Punjabi), Amar Prem (Bengali) and
Double Feluda (Bengali).

Macro Environment and Competitive Landscape

India is one of the largest mobile handset markets in the world, and
being present across all devices is a key strategy for the Company. In
Fiscal 2017, Eros Now concluded deals with Samsung to power Bollywood
entertainment and Micromax for distribution as a pre-install across all
devices.

The Indian film sector has in the recent past attracted significant
interest from international majors who are trying to rapidly expand
their Indian film libraries and as a result has driven up value of the
Indian content. One of Eros' key assets is a large content library which
will be a major beneficiary of this trend. At the same time, in order to
effectively manage the cost of our future content, Eros has taken active
steps over the past two years to develop its own intellectual properties
by partnering with both Indian talent and International film companies
that offer strategic benefits. Trinity Pictures, the company's visionary
venture and in-house franchise label has more than twenty franchises
written across new and diverse genres.

Competition within the Indian entertainment industry has always been
intense however the market and target audience is broad and diverse in
nature. Several SVOD players have been increasing their investment into
acquiring and bidding for new content thus making the barriers to entry
for new entrants in the Indian OTT landscape very high. The Company
strongly believes that linear TV programming in India, although still
very large, will slowly be replaced by Internet TV and as a result
several OTT services will be successful due to the sheer size, diversity
and breadth of the market.

Eros Now and Partnerships

Eros is proud to announce that Eros Now has over 60 million registered
users worldwide across WAP, App and Web as of March 31, 2017 and
approximately 68 million registered users as of June 30, 2017. Eros Now,
having crossed its full year target of a million paying subscribers in
the very first quarter of the year, also achieved its year-end target of
2 million paying subscribers before end of FY2017. Continuing with the
momentum, as of June 2017, Eros Now has 2.9 million paying subscribers,
tripling the base in just 15 months.

Eros Now holds rights to more than 10,000 films, out of which around
5,000 films are owned in perpetuity, across Hindi and regional languages
and is launching more original series in the second half of FY 2018
after successfully launching 'Salute Siachen', A first of its kind
docu-series shot on mobile phones, India's first ever celebrity high
endurance expedition to the Siachen Glacier in FY 2017.

Eros Now was also the number one trending app on the Google Play Store
in the month of July. Apple has also featured the Eros Now app in its
"App Store Best of 2016," which is a significant testament to Eros'
product and service. Demonetization's silver lining is the large
addressable market through mobile wallets for Eros Now. Eros expands its
reach by having tied up exclusively with SBI Buddy and other e-wallets
in India such as Paytm, Mobikwik, Freecharge and Speedpay with an
aggregate addressable market of 260 million.

Eros Now partnered with IIFA (International Indian Film Academy) to be
the first exclusive digital platform to air the awards weekend to its
millions of subscribers worldwide. It also penetrated deeper into the
market in Fiscal 2017 by forming long term partnerships across the
leading Telecom operators in India including Reliance Jio, Vodafone,
Idea, BSNL and Airtel.

Other Corporate Updates

  • In September, 2016, Eros International Plc raised approximately $30
    million through a private placement from two existing institutional
    shareholders. 5 out of top 10 Shareholders have now increased their
    stake in Eros Plc by 62% in aggregate over the last one year.
  • Eros is deeply saddened to announce that Shri Naresh Chandra our
    Independent Director passed away on July 9, 2017. He was 82 years old
    and an esteemed bureaucrat with a glorious career, including receiving
    the Padma Bhushan award, but above all he was a prestigious and a
    great human being who never fails to inspire. The Company welcomes to
    the board Mr Shailendra Swarup who has over 50 years of experience as
    a corporate attorney in India.

Outlook

Kishore Lulla, Executive Chairman of Eros International Plc commented,
"We have made monumental progress with Eros Now touching almost 3
million paying subscribers, a digital library amounting to over 10,000
titles, with the catalogue worth more than a billion dollars and
landmark distribution deals with some of the world's largest brands
including Apple, Samsung, Vodafone, Etisalat and Verizon just to name a
few.

"We look forward to a future where Eros Now will have 100 million
subscribers within the next 5 years, with 6 to 8 million paid
subscribers in Fiscal Year 2018 therefore driving the profitability and
positive cash flows. Having pioneered the Indo China co production model
we look forward to replicating this with Turkey Russia Malaysia
therefore truly positioning Eros as a global digital player including
vertically integrated film studio."

  • Scaling content co-production and ownership in fiscal 2018 with
    greater dependence on the co-production model through partnerships
    with Indian and international talent. The launch of Trinity Pictures,
    our film label for franchise films, investments in our joint venture
    Colour Yellow Productions and identifying the right films to sequel
    from its film library are concrete steps taken in this direction. We
    are excited about these developments and are looking forward to FY2018
    which will see the fruition of this strategy in a significant manner.
    Trinity Writers Room has been established and already completed
    development on 20 franchises.
  • China is a very significant film market and is expected to overtake
    the US film and Eros expects to release selected films from our slate
    for wider release into China during FY2018-2019. Dangal, a film
    starring Aamir Khan, was released in China in over 9,000 screens and
    grossed over $180 million which is more than the film did in India.
    Eros is now replicating this model for Turkish films with their local
    market leader Pana Films.
  • Eros currently has two Indo‐China co-productions which are scheduled
    for release in FY2018-2019, a first for any Indian studio — Kabir
    Khan's travel drama and Siddharth Anand's cross-cultural romantic
    comedy Love In Beijing.
  • Eros Now is on target to achieve 6-8 million paid subscribers at the
    end of FY2018. Eros Now expects that with encouraging trends in the
    local markets in the form of crashing data costs and smartphone costs,
    content consumption through over-the-top (OTT) platforms will benefit
    tremendously in a growing digital environment.
  • Trinity's first franchise Sniff is scheduled for release in Q2FY 2018.
    Two editions of Sniff comics are already available in stores along
    with iconic Chacha Choudhary comics which are available in five
    languages. The video game will also be launched before the movie
    release along with merchandizing and animation series in the pipeline.
  • Eros has strong pre-sales visibility through television sales for FY
    2018 slate. The Company has a compelling slate for FY 2018, including
    films such as a Colour Yellow Production (directed by Anand Rai),
    Munna Micheal (Tiger Shroff), Chanda Mama Door Ke (Sushant Singh),
    untitled directed by Kabir Khan, Reunion (directed by Sujoy Ghosh),
    Bhavesh Joshi, Farzi, untitled by Rahul Dholakia, Vicky Donor 2, Happy
    Bhaag Jayegi 2 and Badlapur 2 to name a few Hindi films. In addition,
    Eros has a number of Tamil, Telugu, Punjabi, Bengali, Marathi and
    Malayalam films such as Kadaisi Vivasayi (Manikandan - Tamil),
    Untitled (Vetrimaran - Tamil), Yaanai (Prabhu Solomon – Tamil), Guru
    Tegh Bahadur (Harry Baweja - Punjabi), Naale (Malayalam), Posto
    (Bengali), Untitled (Ravi Jadhav – Marathi) to name a few.

Eros International Plc Financial Highlights:

  Three Months Ended March 31   Fiscal Ended March 31
(dollars in millions) 2017   2016   % change   2017   2016   % change
                     
Revenue $ 52.7 $ 65.1 -19.0% $ 253.0 $ 274.4 -7.8%
20.4 21.8
Gross profit -6.4% 88.8 101.7 -12.8
 
Operating profit

4.5

6.9

-34.8%

25.4 37.6 -32.4%
 
Adjusted EBITDA(1) 9.4 14.4 -34.7% 55.7 70.9 -21.4%

(1) Reconciliations of the non-GAAP financial measures discussed within
this release to our GAAP operating results are included at the end of
this release. See also "Non-GAAP Financial Measures."

Financial Results for the Three and Twelve Months Ended March 31, 2017

Revenue

In fiscal 2017, Eros film slate comprised 45 films of which five were
high budget, ten were medium budget and 30 were low budget as compared
to 63 films in fiscal 2016, of which six was high budget, sixteen were
medium budget and 41 were low budget. In the three months ended March
31, 2016, Eros film slate comprised 12 films of which six were medium
budget and six were low budget as compared 5 films in the three months
ended March 31, 2017, of which one was medium budget and four were low
budget.

In fiscal 2017, the Company's slate of 45 films comprised 12 Hindi
films, 16 Tamil/Telugu films and 17 regional films as compared to the
same period last year where its slate of 63 films comprised 33 Hindi
films, 19 Tamil/Telugu films and 11 regional film. In three months ended
March 31, 2017, the Company's slate of 5 films comprised 2 Tamil/Telugu
films and 3 regional films as compared to the same period last year
where its slate of 12 films comprised 3 Hindi films, 4 Tamil/Telugu
films and 5 regional films.

For the three months ended March 31, 2017, revenue decreased by 19.0% to
$ 52.7 million, compared to $65.1 million for the three months ended
March 31, 2016. For the twelve months ended March 31, 2017, revenue
decreased by 7.8% to $253.0 million, compared to $274.4 million for the
twelve months ended March 31, 2016.

For the three months ended March 31, 2017, aggregate theatrical revenues
decreased by 30.7% to $12.4 million from $17.9 million for the three
months ended March 31, 2016, mainly due to less number of films,
especially High and medium budget Hindi films, since many of the
releases were deferred due to adverse market conditions during the Rupee
demonetisation by the Indian government in November 2016 which resulted
in decreased footfalls in cinemas in India. In the twelve months ended
March 31, 2017, the aggregate theatrical revenues decreased by 27.0% to
$101.0 million from $138.4 million for the twelve months ended March 31,
2016. The decrease in theatrical revenues reflects the mix of films
released in each period as reflected in the table below. Theatrical
revenues in the twelve months ended March 31, 2016 comprised revenues
from Bajrangi Bhaijaan, Bajirao Mastani, Tanu Weds Manu Returns three
out of the top four highest grossing films of 2016 in comparison to a
relatively weakerslate in 2017 with Housefull 3 as the only top 10 film
so far coupled with the negative impact of demonetisation on the Indian
film industry since November 2016.

For the three months ended March 31, 2017, aggregate revenues from
television syndication decreased by 16.2% to $22.2 million from $26.5
million for the three months ended March 31, 2016, mainly due to lower
new release television revenues partially offset by catalogue revenues.
In the twelve months ended March 31, 2017, the aggregate revenues from
television syndication increased by 22.1% to $88.0 million from $72.1
million for the twelve months ended March 31, 2016. This was due to
resuming catalogue sales since April 2017 after a brief hold back in
catalogue sales in the last two quarters of FY 2016 as reported and
accelerating the catalogue sales since in the last two quarters of
fiscal 2017 post the Rupee demonetization.

For the three months ended March 31, 2017, the aggregate revenues from
digital and ancillary decreased by 13% to $18.1 million from $20.8
million for the three months ended March 31, 2016 again reflecting the
film slate mix in the comparable periods. In the twelve months ended
March 31, 2017, the aggregate revenues from digital and ancillary
increased by 0.2% to $64 million from $63.9 million for the twelve
months ended March 31, 2016 mainly driven by catalogue monetization
strategy, revenues from Eros Now and contribution from other ancillary
revenues streams.

Three months ended   High   Medium   Low   Total
March 31, 2017 - 1 4 5
March 31, 2016

-

6 6 12
Twelve months ended   High   Medium   Low   Total
March 31, 2017 5 10 30 45
March 31, 2016 6 16 41 63

Revenue from India decreased by 37.1% to $19.7 million in the three
months ended March 31, 2017, compared to $31.3 million in the three
months ended March 31, 2016 mainly due to the negative impact of the
rupee demonetisation and subsequent drop in cinema footfalls. In the
twelve months ended March 31, 2017, revenue from India decreased by
23.7% to $122 million, compared to $159.9 million in the twelve months
ended March 31, 2016. The decrease was mainly due to lower theatrical
revenues from a combination of rupee demonetisation impact as well as a
weaker slate mix, with 2016 slate comprising of blockbuster hits such as
Bajrangi Bhaijaan, Bajirao Mastani and Tanu Weds Manu, and partially
offset by a stronger catalogue revenue contribution.

Revenue from Europe decreased by 7% to $10.6 million in the three months
ended March 31, 2017, compared to $11.4 million in the three months
ended March 31, 2016. In the twelve months ended March 31, 2017, revenue
from Europe decreased by 24.9% to $25.7 million, compared to $34.2
million in the twelve months ended March 31, 2016. This was on account
of lower theatrical revenues of the comparable film slate but partially
offset by some catalogue sales in the current quarter.

Revenue from North America decreased by 83.3% to $0.1 million in the
three months ended March 31, 2017, compared to $0.6 million in the three
months ended March 31, 2017. In the twelve months ended March 31, 2016,
revenue from North America decreased by 82.9% to $2.5 million, compared
to $14.6 million in the twelve months ended March 2016. This was on
account of relatively lower theatrical revenues from the film slate and
lower catalogue revenues.

Revenue from rest of the world increased by 1.8% to $22.2 million in the
three months ended March 31, 2017, compared to $21.8 million in the
three months ended March 31, 2016. In the twelve months ended March 31,
2017, revenue from the rest of the world increased by 56.5% to $102.8
million, compared to $65.7 million in the twelve months ended March 31,
2016, mainly due to decreased theatrical revenues from the film mix
offset by increased catalogue revenues and accelerated catching up on
sales held back in the second half of fiscal 2016.

Cost of sales

For the three months ended March 31, 2017, cost of sales decreased by
25.4% to $32.3 million compared to $43.3 million in the three months
ended March 31, 2016. The decrease was mainly because of lower
amortisation costs associated with the comparable film mix and lower
marketing and advertising costs. For the twelve months ended March 31,
2017, cost of sales decreased by 5.2% to $164.2 million compared to
$172.8 million in twelve months period ended March 31, 2016, primarily
due to increases in cumulative amortization costs of $7 million in
twelve months ended March 2017.

Gross profit

For the three months ended March 31, 2017, gross profit decreased by
6.4% to $20.4 million, compared to $21.8 million in the three months
ended March 31, 2016. As a percentage of revenues, the company's gross
profit margin was 38.7% in the three months ended March 31, 2017,
compared to 33.5% in the three months ended March 31, 2016. This was
mainly due to high margin catalogue revenues.

In fiscal 2017 gross profit decreased by 12.8% to $88.8 million,
compared to $101.7 million in fiscal 2016. As a percentage of revenues,
our gross profit margin was 35.1% in the fiscal 2017, compared to 37.0%
in fiscal 2016. This was mainly due to an overall weaker slate mix,
reduced theatrical revenues for the films released during the rupee
demonetization in India but partially offset by strong catalogue
revenues.

EBIT

For the three months ended March 31, 2017, EBIT increased by 250% to
$4.9 million compared to $1.4 million in the three months ended March
31, 2016. In fiscal 2017, EBIT increased by 16.8% to $39.7 million,
compared to $34 million in fiscal 2016 mainly due to higher catalogue
sales since April 2017 after a brief hold back in catalogue sales in the
last two quarters of FY 2016 as reported and accelerating the catalogue
sales since in the last two quarters of fiscal 2017 post the Rupee
demonetization.

Adjusted EBITDA

For the three months ended March 31, 2017, adjusted EBITDA decreased by
34.7% to $9.4 million compared to $14.4 million in the three months
ended March 31, 2016. In fiscal 2017, adjusted EBITDA decreased by 21.4%
to $55.7 million, compared to $70.9 million in fiscal 2016 mainly due to
lower new release revenues due to Rupee demonetization impact offset by
significant high margin catalogue revenues.

Administrative costs

For the three months ended March 31, 2017, administrative costs
increased by 6.0% to $15.8 million compared to $14.9 million for the
three months ended March 31, 2016. In fiscal 2017, administrative costs
decreased by 1.1% to $63.3 million compared to $64.0 million for the
fiscal, 2016, due to lower share based compensation.

Net finance costs

For the three months ended March 31, 2017, net finance costs increased
by 463.6% $6.2 million, compared to $1.1 million in the three months
ended March 31, 2017. In fiscal 2017, net finance costs increased by
115.0% to $17.2 million, compared to $8 million in fiscal 2016, mainly
due to lower income from financing activities and increased borrowing
costs.

Income tax expense

In fiscal 2017, the provisions for income taxes are $11.0 million,
compared to $12.7 million in fiscal 2016, respectively. Effective income
tax rates were 31% and 21.1% for fiscal 2017 and 2016, respectively
excluding non-deductible share-based payment charges. The change in
effective rate principally reflects a change in the pattern of the
profits subject to income tax amongst our subsidiaries.

Net Income

In fiscal 2017 ended March 31, 2017, net income decreased by 13.5% to
$11.5 million compared to $13.3 million for the fiscal, 2016.

Trade Receivables

As of March 31, 2017, Trade Receivables increased to $226.8 million from
$169.43 million as of March 31, 2016 mainly due to significantly higher
catalogue sales in fiscal 2017 compared to fiscal 2016 where Eros had
held back at least $40 million of catalogue sales in the last two
quarters. Catalogue sales have payment terms that sometimes extend up to
a year. We have collected over $25 million of fiscal 2017 trade
receivables post balance sheet.

Net Debt

As of March 31, 2017, net debt increased to $157.6 million from $120.4
million as of March 31, 2016 mainly due to Revolving Credit Facility
being significantly paid down with internal cash balances offset by
relatively lower cash flow from operating activities due to revenue mix
being skewed to catalogue revenues that have longer payment cycles.

Conference Call

The Company will host a conference call on Friday, July 28, 2017, at
8:30 AM Eastern Standard Time.

To access the call please dial 646 254 3387 or 855 217 7942 from the
United States, or +44(0)20 3427 1931 or +44(0)800 279 4842 from outside
the U.S. The conference call I.D. number is 9776352. Participants should
dial in 5 to 10 minutes before the scheduled time.

A replay of the call can be accessed through August 3, 2017 by dialing
719 457 0820 or 888 203 1112 from the U.S., or +44(0)207 984 7568 or
+44(0)808 101 1153 from outside the U.S. The conference call I.D. number
is 9776352. The call will be available as a live webcast, which can be
accessed at Eros'
Investor Relations website
. A replay of the webcast recording will
be available until July 28, 2018.

Non-GAAP Financial Measures

Net Income

The Company uses the term Net Income, as the International Financial
Reporting Standards ("IFRS") define the term as synonymous with profit
for the period.

Adjusted EBITDA

In addition to the results prepared in accordance with IFRS provided in
this release, the Company uses Adjusted EBITDA. The company uses
Adjusted EBITDA along with other IFRS measures to evaluate operating
performance. Adjusted EBITDA is defined by the Company as net income
before interest expense, income tax expense and depreciation and
amortization (excluding amortization of capitalized film content and
debt issuance costs) adjusted for impairments of available-for-sale
financial assets, profit/loss on held for trading liabilities (including
profit/loss on derivatives) share based payments and transaction costs
related to equity transactions.

Adjusted EBITDA, as used and defined by us, may not be comparable to
similarly-titled measures employed by other companies and is not a
measure of performance calculated in accordance with GAAP. Adjusted
EBITDA should not be considered in isolation or as a substitute for
operating income, net income, cash flows from operating investing and
financing activities, or other income or cash flow statement data
prepared in accordance with GAAP. Adjusted EBITDA provides no
information regarding a company's capital structure, borrowings,
interest costs, capital expenditures and working capital movement or tax
position. However, our management team believes that Adjusted EBITDA is
useful to investors in evaluating our results of operations because this
measure:

• is widely used by investors to measure a company's operating
performance without regard to items excluded from the calculation of
such, term, which can vary substantially from company to company
depending upon accounting methods and book value of assets, capital
structure and the method by which assets were acquired, among other
factors;

• help investors to evaluate and compare the results of our operations
from period to period by removing the effect of our capital structure
from our operating structure; and

• is used by our management team for various other purposes, including
presentations to our board of directors, as a basis for strategic
planning and forecasting.

See the supplemental financial schedules for a reconciliation of
Adjusted EBITDA to Net Income.

Cautionary Statement Concerning Forward-Looking Statements

Some of the information presented in this press release and in related
comments by Eros' management contains forward-looking statements. In
some cases, these forward-looking statements are identified by terms and
phrases such as "aim," ‘‘anticipate,''
‘‘believe,'' "feel," "contemplate," ‘‘intend,'' ‘‘estimate,'' ‘‘expect,'' ‘‘continue,'' ‘‘should,'' ‘‘could,'' ‘‘may,'' ‘‘plan,'' ‘‘project,'' ‘‘predict,''
‘‘will,'' "future," "goal," "objective," and similar expressions and
include references to assumptions and relate to Eros' future prospects,
developments and business strategies. Similarly, statements that
describe Eros' strategies, objectives, plans or goals are
forward-looking statements and are based on information available to
Eros as of the date of this press release. Forward-looking statements
are subject to risks, uncertainties and assumptions that could cause
actual results to differ materially from those contemplated by the
relevant statement. Such risks and uncertainties include a variety of
factors, some of which are beyond Eros' control, including but not
limited to market conditions and economic conditions. Information
concerning these and other factors that could cause results to differ
materially from those contained in the forward-looking statements is
contained under the caption "Risk Factors" in Eros' Annual Report on
Form 20-F filed with the U.S. Securities and Exchange Commission. Eros
undertakes no obligation to revise the forward-looking statements
included herein to reflect any future events or circumstances, except as
required by law. Eros' actual results, performance or achievements could
differ materially from the results expressed in, or implied by, these
forward-looking statements.

Seasonality

The Groups' financial position and results of operations for any period
fluctuate due to film release schedules. Film release schedules take
account of holidays and festivals in India and elsewhere, competitor
film releases and sporting events.

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 was 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 a competitive
advantage through its extensive and growing movie library comprising of
over 3,000 films, which include Hindi, Tamil, and other regional
language films for home entertainment distribution. Eros International
has built a dynamic business model by combining the release of new films
every year with the exploitation of its film library. The company also
owns the rapidly growing OTT platform Eros Now. For further information
please visit: www.erosplc.com

 

EROS INTERNATIONAL PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2017 AND 2016

(Unaudited; in thousands)

          As at March 31
2017     2016
(Recasted)*
(in thousands)
ASSETS
Non-current assets
Property, plant and equipment $ 10,354 $ 10,686
Goodwill 4,992 5,097
Intangible assets — trade name 14,000 14,000
Intangible assets — content 904,628 795,139
Intangible assets — others 4,360 6,127
Available-for-sale financial assets 29,613 30,147
Trade and other receivables 11,443 9,521
Income tax receivable 1,051 2,645
Restricted deposits 335 867
Deferred income tax assets   112   167
Total non-current assets $ 980,888 $ 874,396
Current assets
Inventories $ 214 $ 287
Trade and other receivables 242,762 188,361
Current income tax receivable 253 238
Cash and cash equivalents 112,267 182,774
Restricted deposits   6,981   1,822
Total current assets   362,477   373,482
 
Total assets $ 1,343,365 $ 1,247,878
 
LIABILITIES
Current liabilities
Trade and other payables $ 120,082 $ 65,178
Acceptances 8,935 8,688
Short-term borrowings 180,029 210,587
Current income tax payable   7,055   6,234
Total current liabilities $ 316,101 $ 290,687
 
Non-current liabilities
Long-term borrowings $ 89,841 $ 92,630
Other long - term liabilities 5,350 536
Derivative financial instruments 12,553 22,850
Deferred income tax   35,973   32,002
Total non-current liabilities $ 143,717 $ 148,018
 
Total liabilities $ 459,818 $ 438,705
 
EQUITY
Share capital $ 31,877 $ 30,793
Share premium 399,686 356,865
Reserves 436,997 423,230
Other components of equity (48,119) (53,310 )
JSOP reserve   (15,985)   (17,167 )
Equity attributable to equity holders of Eros International Plc $ 804,456 $ 740,411
 
Non-controlling interests   79,091   68,762
Total equity $ 883,547 $ 809,173
Total liabilities and shareholder's equity $ 1,343,365 $ 1,247,878
 
 

EROS INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INCOME

(Unaudited; in thousands, except per share amounts)

      Three Months Ended March 31,   Twelve Months Ended March 31,
2017   2016 2017     2016
Revenue $ 52,675 $ 65,142 $ 252,994 $ 274,428
Cost of sales   (32,266 )   (43,322 )   (164,240)   (172,764 )
Gross profit 20,409 21,820 88,754 101,664
Administrative cost   (15,839 )   (14,935 )   (63,309)   (64,019 )
Operating profit 4,570 6,885 25,445 37,645

Finance costs

(6,715 ) (3,131 ) (19,521) (13,719 )
Finance income   541   2,037   2,365   5,709
Net finance costs (6,174) (1,094 ) (17,156) (8,010 )
Other losses   376   (5,457 )   14,205   (3,636 )
Profit before tax (1,228) 334 22,494 25,999
Income tax benefit/ (expense)   (845 )   625   (11,039)   (12,711 )
Profit for the period $ (2,073) $ 959 $ 11,455 $ 13,288
 
Attributable to:
Equity holders of Eros International Plc $ (2,679) $ (211 ) $ 3,805 $ 3,797
Non-controlling interest   606   1,170   7,650   9,491
 
Earnings per share(cents)
Basic (loss)/earnings per share (4.4) (0.4 ) 6.4 6.6
Diluted (loss)/earnings per share (4.4) (0.4 ) 5.1 5.2
 
 

EROS INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND
LOSS

(Unaudited; in thousands)

  Three Months Ended March 31,   Twelve Months Ended March 31,
2017     2016 2017     2016
 
Profit for the period/year $ (2073) $ 959 $ 11,455 $ 13,288
Other comprehensive income:
Items that will not be subsequently reclassified
to profit and loss
Revaluation of property (net of tax) 399 399
Items that will be subsequently reclassified to profit and loss
Exchange differences on translating foreign operations 9,444 (66 ) 6,591 (12,993 )
Reclassification of cash flow hedge to the statement of income 201 201 804 804
Unrealized gain on available-for-sale financial assets (384) (384)
 
Total other comprehensive income/(loss) for the period/year $

9,261

$ 534 $ 7,011 $ (11,790 )
Total comprehensive income for the period/year net of tax $ 7,188 $ 1,493 18,466 $ 1,498
 
Attributable to:
Equity holders of Eros International Plc $ 4,242 $ (124 ) $ 8,997 $ (5,632 )
Non-controlling interest 2,946 1,617 9,469 7,130
 
 

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED MARCH 31, 2017 AND 2016

 

      Year ended March 31
2017     2016     2015
(in thousands)
Cash flow from operating activities
Profit before tax $ 22,494 $ 25,999 $ 62,508
Adjustments for:
Depreciation 1,082 1,154 1,089
Share based payment 23,471 30,992 21,915
Amortization of intangible film and content rights 135,316 128,303 117,254
Amortization of other intangible assets 1,816 1,131 608
Other non-cash items (10,616) 4,562 17,005
Net finance costs 17,156 8,010 5,861
Gain on sale of Investments (58) --
Movement in trade and other receivables (72,247) 19,690 (93,975)
Movement in inventories (412) 189 67
Movement in trade and other payables 4,141 31,457 1,361
(Gain)/loss on sale of property, plant and equipment   53   (3)   (9)
Cash generated from operations 122,196 251,484 133,684
Interest paid (18,390) (12,536) (6,929)
Income taxes paid   (4,813)   (4,349)   (8,800)
Net cash generated from operating activities $ 98,993 $ 234,599 $ 117,955
 
Cash flows from investing activities
Advance given to an undertaking $ $ $ (2,465)
Purchase of available for sale investment (230)
Proceeds from sale of available-for-sale investment 288
Purchase of property, plant and equipment (678) (1,702) (529)
Proceeds from disposal of property, plant and equipment 2 56 29
Proceeds from/(investment in) restricted deposits held with banks (4,018) 76 (2,935)
Acquisition of cash and cash equivalent in subsidiary 263
Purchase of intangible film rights and content rights (173,481) (211,253) (276,216)
Purchase of other intangible assets (1,500) (1,322)
Interest received   2,696   2,935   4,198
Net cash used in investing activities $ (175,191) $ (211,355) $ (279,240)
 
Cash flows from financing activities
Proceeds from issue of share capital, net of transaction costs $ 30,466 $ 5,414 $ 110,027
Proceeds from issue of shares by subsidiary 40 137 1,477
Proceeds from issue out of treasury shares 938 6,294 888
Proceeds from/(repayment of) short term debt with maturity less than
three months (net)
(39,493) 1,918 (2,983)
Proceeds from short term debt 76,310 79,695 69,815
Repayment of short term debt (66,404) (72,746) (65,296)
Proceeds from long term debt, net of transaction costs of $384
(2016:$139, 2015: $1,909)
16,522 13,847 91,206
Repayment of long term debt   (12,450)   (26,962)   (27,573)
Net cash generated from financing activities $ 5,929 $ 7,597 $ 177,561
 
Net (decrease)/increase in cash and cash equivalents (70,269) 30,841 16,276
 
Effects of exchange rate changes on cash and cash equivalents (238) (1,731) (8,061)
Cash and cash equivalents at beginning of year   182,774   153,664   145,449
Cash and cash equivalents at the end of year $ 112,267 $ 182,774 $ 153,664
 

Supplemental Financial Data

1. TRADE AND OTHER RECEIVABLES
  As at March 31
2017     2016
(in thousands)
Trade accounts receivables $ 226,985 $ 169,413
Trade accounts receivables reserve   (163)   (130)
Trade accounts receivables net $ 226,822 $ 169,283
 
Other receivables 25,683 18,493
Prepaid charges 277 1,071
Unbilled revenue   1,423   9,035
Trade and other receivables $ 254,205 $ 197,882
 
Current Trade and other receivables 242,762 188,361
Non-Current Trade and other receivables   11,443   9,521
$ 254,205 $ 197,882
 

The age of trade accounts receivables past due but not impaired is as
follows:

  As at March 31
2017     2016
(in thousands)
Not more than three months $ 23,593 $ 38,593
More than three months but not more than six months 16,729 41,448
More than six months but not more than one year 43,920 27,594
More than one year   58,516   2,882
$ 142,758 $ 110,517
 
2. BORROWINGS

An analysis of long-term borrowings is shown in the table below.

  Nominal     As at March 31
Interest Rate Maturity 2017     2016
(in thousands)
Asset backed borrowings
Vehicle loan 10 -12% 2017-21 $ 325 $ 260
Term loan BPLR+1.8 - 2.75% 2016-17 1,264 6,244
Term loan BPLR+2.75% 2017-18 466 1,579
Term loan BPLR+2.85% 2019-20 5,776 7,932
Term loan BPLR+2.55 – 3.4% 2020-21 11,945 12,945
Term loan MCLR+3.45% 2021-22   14,603    
$ 34,379 $ 28,960
Unsecured borrowings
Retail bond 6.5% 2021-22 $ 62,672 $ 71,901
Revolving facility LIBOR +7.5% and Mandatory Cost 2016-17 85,000 123,750
Other borrowings 10.5% 2021-22   5,853   6,933
$ 153,525 $ 202,584
 
Nominal value of borrowings $ 187,904 $ 231,544
Cumulative effect of unamortized costs (1,665) (2,109)
Installments due within one year   (96,398)   (136,805)
Long-term borrowings — at amortized cost $ 89,841 $ 92,630

Bank prime lending rate and marginal cost lending rate ("BPLR" & "MCLR")
is the Indian equivalent to LIBOR. Asset backed borrowings are secured
by fixed and floating charges over certain Group assets.

Analysis of short-term borrowings

  Nominal   As at March 31
interest rate (%) 2017     2016
(in thousands)
Asset backed borrowings
Export credit, bill discounting and overdraft BPLR+1-3.5% $ 41,687 $ 12,028
Export credit and overdraft LIBOR+3.5% 24,572 26,586
Term loan* 13% - 14.25% 5,396 -
Term loan MCLR+4.25%   4,943    
$ 76,598 $ 38,614
Unsecured borrowings
Commercial paper 10.0% 13.0% - 1,511
Other short term loan 1.75% - 2.6% - 32,871
Other short term loan** 12% - 14% 7,033 786
Installments due within one year on long-term borrowings   96,398   136,805
Short-term borrowings - at amortized cost $ 180,029 $ 210,587

*Secured by pledge of shares held in the group's majority owned
Subsidiary Eros International Media Limited, India.

**Includes loan of $6,417 from Eros Television Private Limited, a
related party.

Fair value of the long - term borrowings as at March 31, 2017 is
$155,923 (2016: $195,924). Fair values of long-term financial
liabilities except retail bonds have been determined by calculating
their present values at the reporting date, using fixed effective market
interest rates available to the Companies within the Group. As at March
31, 2017, the fair value of retail bond amounting to $43,416 has been
determined using quoted prices from the LSE. Carrying amount of short -
term borrowings are considered a reasonable approximation of fair value.

3.

ACCEPTANCES
  As at March 31
2017     2016
(in thousands)
Payable under the film financing arrangements $ 8,935   $ 8,688
$ 8,935 $ 8,688

Acceptances comprise of credit availed from financial institutions for
payment to film producers for film co-production arrangement entered by
the group. The carrying value of acceptances are considered a reasonable
approximation of fair value

4.

ISSUED SHARE CAPITAL

  Number of
Shares
    GBP
(in thousands)
Authorized
Ordinary shares of 30p each at March 31, 2017 and March 31, 2016   83,333,333   25,000
  Number of Shares         USD
Allotted, called up and fully paid A Ordinary
30p Shares
    B Ordinary
30p Shares
 
As at March 31, 2015   31,982,488   25,555,220   30,622
Issue of shares on July 16, 2015 300,000 138
Issue of shares on August 18, 2015 3,500 2
Issue of shares in February 2016 57,860 26
Issue of shares in March 2016 10,900 5
Transfer of B Ordinary to A Ordinary share 594,566 (594,566)
As at March 31, 2016 32,949,314 24,960,654 30,793
Issue of shares on April 4, 2016 1,750 1
Issue of shares on July 29, 2016 20,813 8
Issue of shares on August, 2016 387,613 153
Issue of shares on September, 2016 2,107,010 825
Issue of shares on October, 2016 98,500 36
Issue of shares on November, 2016 117,963 45
Issue of shares on December, 2016 14,580 6
Transfer of B Ordinary to A Ordinary share 5,581,272 (5,581,272)
Issue of shares of on January, 2017 4,200 2
Issue of shares of on February, 2017 17,437

5

Issue of shares of on March, 2017 11,750 3
As at March 31, 2017 41,312,202 19,379,382 31,877
 

In July, August and November 2016, the Company issued 62,439 ‘A'
ordinary shares to certain executive directors and ex-employee out of
IPO 2006 Plan. As at March 31, 2017, all the share options have been
exercised and issued.

On June 9, 2015, the Board of Directors approved a grant of 580,000 ‘A'
ordinary shares to certain executive directors with a fair market value
of $21.34 per share. Subject to continued employment, these awards with
Nil exercise price, vest over a period of three years. In August 2016,
360,000 shares of 580,000 share awards were issued of which 180,000
shares were issued with restriction. Further, in October 2016, 60,000
shares out of the remaining 220,000 share awards were issued.

The Board of Directors approved grant of 24,500 share awards to certain
employees on various dates between the months of August to October 2016.
These awards with Nil exercise price and fair market value of $ 15.91 -$
17.01 vested on grant date and were issued immediately on vesting dates.

On September 8, 2016, the Board of Directors approved a grant of 100,000
‘A' ordinary share awards to a certain employee with Nil value exercise
price and a fair market value of $16.2. These awards vested on grant
date and were issued on September 23, 2016.

In September 2016, the Company issued 2,000,310 ‘A' ordinary shares to
two of its existing institutional shareholders for an aggregate
consideration of $30 million.

On October 12, 2016 & January 23, 2017, permitted Class B shares
aggregating to 3,247,939 and 2,333,333 Class B shares respectively, were
converted into Class A shares. This was effected through the
cancellation of 5,581,272 Class B shares and subsequent issuance of the
equivalent amount of Class A shares.

On June 5, 2014, the Board of Directors had approved a grant of 525,000
‘A' ordinary share awards with a fair market value of $14.95 per share,
to certain executive directors and members of senior management. These
awards vest subject to certain share price conditions being met on or
before May 31, 2015 and the employee remaining in service until May 31,
2015. On fulfilment of share price condition, 487,500 restricted shares
were issued on December 1, 2014. All these awards have since vested and
shares issued. In case of except 30,000 share awards for which shares
were issued on November 2, 2016.

On September 4, 2015, the Company entered into an employment exit
agreement with an employee pursuant to which the Board approved a grant
of 20,000 ‘A' ordinary share awards with Nil exercise price and a fair
market value of $33.66 per share. These shares were issued on November
2, 2016.

On September 24, 2014, the Board approved a grant of 116,730 ‘A'
ordinary share awards to certain employees. These awards, granted to the
employees on October 21, 2014 with Nil exercise price, subject to
continued employment, vest annually in three equal tranches from the
date of grant. Fair value of each award was $17.07. In April 2016, 1,750
shares were issued with further issuances of 35,050 in October 2016,
November 2016, and January 2017.

On June 28, 2016, the Board of Directors approved a grant of 197,820 ‘A'
ordinary share awards to certain employees with a fair value of $ 14.68
per share. Subject to continued employment, these awards with Nil
exercise price vest over a period of two and half years with first
tranche vesting on November 11, 2016. In Fiscal 2017, 61,380 shares were
issued.

On February 13, 2017, the Company entered into an employment exit
agreement with an employee pursuant to which the management approved a
grant of 17,437 ‘A' ordinary share awards with Nil exercise price and a
fair market value of $11.5 per share. These shares were issued on
February 24, 2017.

As at March 31, 2017, none of the awards were forfeited.

5.

ACQUISITION

On August 1, 2015, Eros' subsidiary Eros International Media Limited
("EIML") acquired 100% of the shares and voting interests in Techzone.
In accordance with the terms of the agreement between the parties, EIML
issued 900,970 equity shares to the shareholders of Techzone at an
acquisition date fair value of INR 586 ($9.16) per share. Up to March
31, 2016, pending completion of valuation of assets, including
intangible assets, the purchase price was allocated on a preliminary
basis to net assets based on initial estimates. On July 31, 2016 the
valuation has been completed and purchase price allocation has been
finalized and changes recognized with retrospective effect. The impact
of the final allocation is not material to the Group's financial
position or results of operations.

6.

SHARE BASED COMPENSATION PLANS

The compensation cost recognized with respect to all outstanding plans
and by grant of shares, which are all equity settled instruments, is as
follows:

  Three months ending
March 31,
  Twelve months ending
March 31,
2017     2016   2017     2016
 
IPO India Plan $ 353 569 2,140 1,736
JSOP Plan 906 904 3,622 2,696
Option award scheme 2012 100 253 699 1,610
2014 Share Plan 299 541 1,427 2,361
2015 Share Plan 33 380 328 932
Other share option awards 2,743 3,652 4,405 894
Management scheme (staff share grant)   392   189   10,850   20,763
$ 4,826 $ 6,488 $ 23,471 $ 30,992
 

In the meeting date June 28, 2016, the Board of Directors approved the
following grants:

620,000 ‘A' ordinary share awards to certain executive directors with a
fair value of $14.68 per share. Subject to continued employment these
awards with Nil exercise price, vest over a period of three years.

197,820 ‘A' ordinary share awards to certain employees with a fair
market value of $14.68 per share. Subject to continued employment, these
awards with Nil exercise price, vest over a period of three years.

On September 8, 2016, the Board of Directors approved, 100,000 ‘A'
ordinary share awards to an employee with a fair market value of $16.2
per share. These awards vested on grant date.

On September 22, 2016, the Board of Directors approved a grant of 18,915
‘A' ordinary share awards to certain employees with Nil value exercise
price and a fair market value of $16.2. These awards vest over a period
of three years.

The Board of Directors approved grant of 24,500 ‘A' ordinary share
awards to certain employees on various dates between the months of
August to October 2016. These awards with Nil exercise value and a fair
market value of $ 15.91 - $ 17.01 on grant date.

On February 17, 2017, the Board of Directors approved, 50,000 ‘A'
ordinary share awards to an employee with a fair market value of $12.5
per share. Subject to continued employment, these awards with Nil
exercise price, vest over a period of three years.

7.

INTANGIBLE CONTENT ASSETS

  Gross
Content
Assets
    Accumulated
Amortization
  Content
Assets
(in thousands)
As at March 31, 2017
Film and content rights $ 1,430,523 $ (796,058) $ 634,465
Content advances 266,232 - 266,232
Film productions   3,931   -   3,931
Non-current content assets $ 1,700,686 $ (796,058) $ 904,628
 
As at March 31, 2016
Film and content rights $ 1,158,737 $ (652,651 ) $ 506,086
Content advances 284,817 284,817
Film productions   4,236     4,236
Non-current content assets $ 1,447,790 $ (652,651 ) $ 795,139
 

8.

EARNINGS PER SHARE
  Three months ended March 31,   Twelve months ended March 31,
2017   2016 2017     2016
(in thousands, except number of shares and earnings per share)
Basic     Diluted Basic   Diluted Basic     Diluted Basic     Diluted
(Loss)/earnings attributable to the equity holders of the parent $ (2679) $ (2679) $ (211 ) $ (211 ) $ 3,805   3,805 $ 3,797   3,797
Potential dilutive effect related to share based compensation scheme
in subsidiary undertaking
    (106 )         (673)     (732 )
Adjusted (loss)/earnings attributable to equity holders of the parent $ (2679) $ (2,785) $ (211 ) $ (211 ) $ 3,805   3,132 $ 3,797   3,065
Number of shares
Weighted average number of shares   60,568,257   60,568,257   57,908,086   57,908,086   59,410,292   59,410,292   57,731,839   57,731,839
Potential dilutive effect related to share based compensation scheme       1,617,476           1,532,839     1,304,185
Adjusted weighted average number of shares (loss)/earnings per share   60,568,257   62,185,733   57,908,086   57,908,086   59,410,292   60,943,131   57,731,839   59,036,024
Earnings attributable to the equity holders of the parent per share
(cents)
  (4.4)   (4.4)   (0.4 )   (0.4 )   6.4   5.1   6.6   5.2

The above table does not split the earnings per share separately for the
‘A' ordinary 30p shares and the ‘B' ordinary 30p shares as there is no
variation in their entitlement to participate in undistributed earnings.

9.

BUSINESS SEGMENTAL DATA

Revenues are presented based on customer location:

 

Three months ended
March 31,

  Twelve months ended

March 31,

2017   2016   2017   2016
 
Revenue by customer's location  
India $ 19,719 $ 31,164 $ 129,251 $ 158,843
Europe 365 10,447 7,695 24,367
North America 877 4,413 10,132 19,865
Rest of the world   31,714 19,118   105,916   71,353
Total Revenue $ 52,675 $ 65,142 $ 252,994 $ 274,428
  Three months ended
March 31,
 

Twelve months ended
March 31,

2017   2016   2017   2016
 
Revenue by group's operation  
India $ 19,718 $ 31,306 $ 121,966 $ 159,855
Europe 10,633 11,352 25,686 34,209
North America 88 639 2,549 14,622
Rest of the world   22,236 21,845   102,793     65,742
Total Revenue $ 52,675   65,142 $ 252,994 $   274,428
 

10.

Other (Gains)/Losses
  Three months ended
March 31,
  Twelve months ended
March 31,
2017     2016 2017   2016
(in thousands)
(Gains) on disposal of property, plant and equipment $ 53 $ $ 53 $ (3 )
Net foreign exchange(gains)/ losses 1,269 (132 ) (3,903 ) 73
Net losses on held for trading financial liabilities 5,589 - 3,566
Transaction costs related to equity transactions (58)
Impairment loss on available-for-sale financial assets   (1,698)     (10,297)  
$ (376) $ 5,457 $ (14,205) $ 3,636

The net gains/(losses) on held for trading financial liabilities in the
three and twelve months ended March 31, 2017 and 2016, respectively,
principally relate to derivative instruments not designated in a hedging
relationship.

11.

NON-CASH EXPENSES

Significant non-cash expenses except loss on sale of assets, share based
compensation, depreciation, derivative interest and amortization were as
follows:

  As at March 31
2017   2016
(in thousands)
Net loss/(gain) on held for trading financial liabilities $ (10,297 ) $ 3,566
Provisions for trade and other receivables 2,430 1,315
Balances written back (798)
Impairment loss on content advances 1,887 2,545
Unrealized foreign exchange (gain)/loss   (3,838 )   (2,864 )
       
$ (10,616 ) $ 4,562

 

12.

NON GAAP-FINANCIAL MEASURES

Adjusted EBITDA

  Three months ended March 31,   Twelve months ended March 31,
2017     2016 2017     2016
(in thousands)
Net income $ (2073) $ 959 $ 11,455 $ 13,288
Income tax (benefit)/expense 845 (625 ) 11,039 12,711
Net finance costs 6174 1,094 17,156 8,010
Depreciation 492 444 1,082 1,154
Amortization (1) 788 426

1,816

1,131
Share based payments (2) 4,826 6,488 23,471 30,992
Net losses on held for trading financial liabilities (1,698) 5,589 (10,297) 3,566
Gain on sale of available-for-sale financial assets (58)
Adjusted EBITDA $ 9,354 $ 14,375 $

55,664

$ 70,852

(1) Includes only amortization of intangible assets other than
intangible content assets.
(2) Consists of compensation costs
recognized with respect to all outstanding plans and all other equity
settled instruments.

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