Eros pins hopes on new Bollywood releases

Reuters - With a slate of highly-anticipated Bollywood films on the anvil, Indian movie distributor Eros International Plc expects to set the box office on fire and boost its overall revenue by 20 percent for the current financial year.

The AIM-listed company also plans to expand its music label -- which it launched three years ago -- by acquiring three or four companies over the next two to three months, Chief Executive Kishore Lulla said.

"Music has great potential and the royalties, which are coming from either radio or television, will have a lot of growth," Lulla told Reuters.

The CEO, however, declined to divulge more details, but said the company had no plans for acquisitions in other segments.

Eros has five major Hindi movies scheduled for release this year, including the romantic comedy "Kambakkth Ishq" (Wretched Love) featuring Bollywood A-listers Akshay Kumar and Kareena Kapoor, with cameos by Hollywood stars Sylvester Stallone, Denise Richards and Brandon Routh.

The company -- which has a library of over 1,900 films -- expects theatrical revenue to rise 20 percent to 25 percent this year, which translates to about $55.6 million to $57.9 million.

Based on last year's turnover $156.7 million, fiscal 2010 overall revenue is expected to be about $188.0 million.

Two analysts on average were expecting the company to post overall revenue of $177.8 million, according to Reuters Estimates.

Lulla said he also expected a rise in revenue in dubbed markets -- with demand for Indian films increasing in countries such as Germany, Russia, Brazil and Mexico -- and digital media.