Eros Share Discussion Threads

[soul limbo] 13/11/2015 15:06

The ever increasing receivables
yet little or no free cash flow
and the constant issue of shares to fund the lifestyles of the family that run this

It all points to something very fishy. And I aint talking about Bombay Duck

[soul limbo] 13/11/2015 15:02

No real view on the matter.

What I do believe is the company is run as a fiefdom by family members.

[yorkie52] 13/11/2015 14:58

Soul limbo. Do you accept that the figures in the report are wrong? Or are you blind as well.

[eurofox] 13/11/2015 14:48

keep it up mate, the bonds are not cheap enough yet

[soul limbo] 13/11/2015 14:46

Eros’ stock woes continue as it fights allegations on revenue and releases

By Shashidhar KJ ( @lomirgenii1988 ) on November 13, 2015

Movie production house Eros International continues to face allegations of overstating its revenues and theatrical releases and was forced to issue a statement yesterday. Terming them “baseless”, the company was responding to an article published by Alpha Exposure where it said that Eros had released only 52 films in 2014 and 2015 rather than 134 films as said in its disclosures.

Eros said that its management attended a conference hosted by Wells Fargo where “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,” Eros added.

Digital business market share

The Alpha Exposure story also took aim at Eros’ digital and ancillary business and said the company faked the segment’s revenues. According to the story, Eros had claimed revenues of $60 million and $48 million in 2014 and 2015 respectively. The story highlighted a KPMG report (pdf) where it said the market size of the digital film distribution was $158 million. “Eros’ reported revenue implies 42% and 38% market share of the industry’s total Cable and Satellite Rights and the industry’s total Digital and Ancillary revenue, respectively. These levels of penetration seem implausible based on the much smaller proportion of gross box office receipts represented by Eros’ reported theatrical revenues,” it further read.

Readers will note that Eros’ digital and ancillary business revenues have been falling over the last three quarters. Digital revenues stood at $21.3 million at the end of Q3 FY15, $18.7 million at the end of Q4 FY15 and $6.3 million at end of Q1 FY16.

Earlier in the month, Eros issued a clarification on the number of users on its digital platform Eros Now. Earlier in October, Eros had said that crossed 30 million registered users as of September 30. The 30 million registered users reported by ErosNow as of 30th September 2015 are a combination of web, WAP and APP users, the company said.

Stock downgrade by Wells Fargo

Earlier in October, Eros’ stock was downgraded by Wall Street Bank Wells Fargo. According to the investment bank, Eros’ continued increase in revenues from the UAE is unexplained. The company said Eros International Plc, consolidates its subsidiary financials, and cancels out all inter-company transactions between the group companies and only reports the third party revenues, costs and profitability and that analyzing subsidiary financials which in isolation can be extremely misleading, in its explanation.

Push for digital

In June, Eros canned its television network plans following investor calls to focus on their digital platform ErosNow. Eros CEO Kishore Lulla, in an analyst call, said that the company has shelved its plans for a TV network at least for a year after a group of shareholders led by UK-based investment firm Knight Assets cautioned against launching a television network and asked them to focus on their digital products.

[soul limbo] 13/11/2015 14:40

Eros International investigated by Block & Leviton LLP for potential securities law violations

By Bollywood Hungama News Network, Nov 13, 2015 - 12:56 hrs IST


Earlier we had reported that the stock of Eros International had taken a hit at the New York Stock Exchange (NYSE) after analysts raised red flags on the company's receivables and user count of its streaming service ErosNow. Now we hear that the Indian production giant faces yet another problem as a Boston-based law firm Block & Leviton that represents investors nationwide has launched an investigation into the company.

This investigation comes after the significant drop in Eros' stock price on the news that Eros has overstated its revenue and the number of films it has distributed over the last two years. In fact as per the theory on which the investigation is based, Eros has apparently overstated its theatrical revenue by 82% and 104% during fiscal years 2014 and 2015 respectively and that the company also overstated the number of movies it has distributed by 124% and 200% during fiscal years 2014 and 2015.

With this new development Eros International's stock price fell more than 31% to close at $8.25 on Wednesday, resulting in a loss of more than $100 million in the company's market capitalization.

[soul limbo] 13/11/2015 14:39

Eros Media plunges 9% over alleged overstatement of revenues by parent co

By ECONOMICTIMES.COM | 13 Nov, 2015, 11.19AM IST


NEW DELHI: Shares of Eros Media plunged over 9 per cent in Friday's session after the parent company in the United States came under shareholder scrutiny over alleged overstatement of revenues and films distributed by the company in the past two years.

Reacting to the development, the stock fell 9.98 per cent to hit a low of Rs 237.60.

The parent company's stock listed in the US has seen significant drop in share price after the reports surfaced. Block & Leviton, a Boston-b ..

[eddie1980] 13/11/2015 14:34

OMG, laughing my a*s now at the reasoning for the $4 target. (the av price for the last audited financial statements.)

I can answer this - they did not complete US forms pre 2013 as they were not based in the US, so just used annual information as taken from the consolidated accounts.

This statement actually tells them, that when they complete the quarterly forms, and then the annual form (the sum of the quarterly's), this is not the same as the full year audited statements which are completed after the year end, and probably well after the last quarterly form is submitted. So 2012 full year not directly comparable to 2013 or 2014, as the earlier is from the stats, the later from the quarterly reports.

I think they know if they look at the 2014 accounts, they are audited.

Who pays the monkeys to publish such s&*t.

[eddie1980] 13/11/2015 14:27

As an accountant, it is clear that the street watchdog one is nonsense.

For one, why would they look at PAT - how on earth is the group meant to have an accurate quarterly tax expense for the SEC filings, when tax is calculated annually, and not finalised until up to a year after the year end.

I do not even understand what basis they are applying tax to the quarterly reports, as its not even a high level estimate on the quarters PBT. In some quarters, there is tax on a loss. in another, no tax on $20m PBT.

The audited annual report, for a consolidated full year, with all year end and consolidation adjustments in, with a tax accrual calculated based on those results, is clearly going to have a different PAT to the quarterly reports.

Reading the report has angered me, as I have for many years had doubts about EROS and the fact it never produces cashflow, and find the recent trend (debtors ballooning) quite odd, and I would never invest, but this report is basically rubbish, and if the shorters are producing rubbish, it in fact adds more credibility to the business.

I would rather they just focus on the cashflow so they answer on these peculiarities than try to compare apples with pears and declare fraud. I hope the writers of this report are hammered by the US authorities.

[yorkie52] 13/11/2015 14:00

Soul limbo. Street Watchdog research note not worth the paper its written on. It uses profits from first 3 quarters of 2014 added to the last quarter of 2015 to supposedly arrive at a figure for the full year 2015!!!!!! It then uses that to make out that the filed figure for 2015 used by Eros is wrong!!!! If they had used the correct figures they would have found the figures reported by Eros are correct. Yet more misinformation presented by the these so called researchers.

[soul limbo] 13/11/2015 13:33

Alpha Exposure ‏@alpha_exposure 55s56 seconds ago

6/n $EROS We are putting the final touches on a new seeking alpha article explaining all of this. Company is a fraud. stock to $0


Alpha Exposure ‏@alpha_exposure 2m2 minutes ago

5/n $EROS and we can now definitively say that we delivered the head shot. Movie numbers don't match and revenues are vastly overstated


Alpha Exposure ‏@alpha_exposure 3m3 minutes ago

4/n $EROS and if we saw lots of small and irrelevant movies, we could audit the company's revenues by building it up film by film


Alpha Exposure ‏@alpha_exposure 3m3 minutes ago

3/n $EROS if the company did deliver a complete list, we would be able to see that many movies were small and irrelevant,


Alpha Exposure ‏@alpha_exposure 4m4 minutes ago

2/n $EROS this was the "head shot" because either the company would be unable to deliver a complete list or


Alpha Exposure ‏@alpha_exposure 5m5 minutes ago

1/n $EROS - I previously said we delivered the head shot because when we asked the company for a full list of its movies

[soul limbo] 13/11/2015 11:21

On October 30 2015, a report was published on Eros asserting, among other things, that:

(1) Eros’ reported earnings are significantly overstating the economic reality of its business model;

(2) Eros’ subsidiary financials reveal a lack of free cash flow and raise many questions about the company’s accounting; and

(3) Eros has enriched its controlling family at the expense of shareholders through a series of related-party transactions.

When the truth was revealed, shares dropped causing investors harm.

[soul limbo] 13/11/2015 11:19

Tim Kempster ‏@timkempster 2m2 minutes ago

What looks like a mis-statement of accounts … for #EROS even I can understand. Class action lawyers will like this.

[soul limbo] 13/11/2015 11:02

EROS INTERNATIONAL PLC SHAREHOLDER ALERT: Wolf Haldenstein Adler Freeman & Herz LLP is Investigating Securities Class Action ...

Wolf Haldenstein Adler Freeman & Herz LLP announces that it has commenced an investigation of Eros International plc ("Eros" or the "Company") (NYSE:EROS) concerning possible violations of federal securities laws by the Company and/or certain of its officers and directors.

On October 30, 2015, Seeking Alpha published a report alleging that "due to aggressive accounting practices, Eros' reported earnings are significantly overstating the economic reality of its business model" and that the Company's subsidiary financials "reveal a lack of free cash flow and raise many questions about the company's accounting." The report also alleges that management engaged in related-party transactions and the Company "appears to have made meaningful misstatements to investors."

This week, on November 10, 2015, Seeking Alpha, following up on its October 30th report about the Company, reported that Eros "has overstated its theatrical revenue by 82% and 104% during fiscal years 2014 and 2015, respectively" and "overstated the number of movies it has distributed by 124% and 200% during fiscal years 2014 and 2015, respectively."

On this news, the Company's stock price fell more than 31% to close at $8.25 on Wednesday, resulting in a loss of more than $100 million in the Company's market capitalization. Since peaking at $39.01 on August 13, 2015, the company has lost close to $1 billion in market capitalization.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at [phone], via e-mail at [e-mail], or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “Eros Investigation.”

Attorney Advertising. Prior results do not guarantee or predict a similar outcome.



View source version on businesswire.com:

Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.,
Gregory Stone, Director of Case and Financial Analysis
Email: [e-mail], [e-mail] or [e-mail]
Tel: [phone] or [phone]

[soul limbo] 13/11/2015 11:01

INVESTOR ALERT: Khang & Khang LLP Announces an Investigation of Claims Against Eros International Plc & Encourages Shareholde...

Khang & Khang LLP announces that it is investigating claims of potential misrepresentations by Eros International Plc (“Eros” or the “Company”) (EROS). The investigation focuses on whether the Company and its officers violated securities laws by issuing misleading information to investors.

If you purchased shares of Eros during the Class Period, please contact Joon M. Khang, Esquire, of Khang & Khang, 18101 Von Karman Avenue, 3rd Floor, Irvine, CA 92612, by telephone: [phone], or by email at [e-mail].

There has been no class certification in this case. Until certification occurs, you are not represented by an attorney. You may choose to take no action and remain a passive class member.

On October 30 2015, a report was published on Eros asserting, among other things, that: (1) Eros’ reported earnings are significantly overstating the economic reality of its business model; (2) Eros’ subsidiary financials reveal a lack of free cash flow and raise many questions about the company’s accounting; and (3) Eros has enriched its controlling family at the expense of shareholders through a series of related-party transactions. When the truth was revealed, shares dropped causing investors harm.

If you wish to learn more about this lawsuit, or if you have any questions concerning this notice or your rights, please contact Joon M. Khang, a prominent litigator for almost two decades, by telephone: [phone], or by email at [e-mail].

This press release may constitute Attorney Advertising in some jurisdictions.

View source version on businesswire.com:



View source version on businesswire.com:

Khang & Khang LLP
Joon M. Khang, Esq.
Telephone: [phone]
Facsimile: 949-225-4474
[e-mail]

[eurofox] 12/11/2015 16:56

so even the shorters can't agree - some put a value of 0 on the shares and others a value of $4 - keep it going chaps

[soul limbo] 12/11/2015 16:52

another one

[eurofox] 12/11/2015 16:52

keep the ding dong going - 20% of today's total bond volume in and out was mine and very profitable it was

[soul limbo] 12/11/2015 16:49

lonrho

the market is telling you who it thinks is right.

[lonrho] 12/11/2015 16:47

hpcg

fair enough but the seeking alpha blogger has got little concept of accounting principles or by the look of it the indian film industry. If I am accepting the management in a puppy dog manner then surely being short you are accepting the pronouncements of a professed short anonymous blogger in a puppy dog manner.

However I do agree that the balance sheet re receivables and also the UAE sales look strange and for that reason I wouldn't touch the shares and have been buying the bonds.Unless the company is a complete fraud and the balance sheet total rubbish the bonds appear to be a reasonable risk when net debt is compared to even a substantially devalued asset side of the balance sheet.

[smurfy2001] 12/11/2015 16:41

Latest response from Eros

[soul limbo] 12/11/2015 16:39

lonrho... obviously you are not aware the many US frauds that have been exposed by 'anonymous' writers. All denied it initially but in the end, they came tubmbling down.

[hpcg] 12/11/2015 16:28

lonrho (ironic name if I might say so) - Name a fraud which didn't deny it? Consider how many companies have and do mislead the market. Consider how many execs have been shown to be liars. None of which says these definitely apply here, I'm simply saying that a puppy dog like acceptance of what management says is a way to get fleeced somewhere along the line. That's happened to all of us. All we can do is limit losses when we have been duped.

[lonrho] 12/11/2015 16:20

it seems strange that most people believe an anonymous blogger whose grasp of the facts in many areas seems incomplete as opposed to the company whose rebuttals if untrue are merely extending individuals ultimate prison sentences. In the USA these are not minor unlike in the UK.