BENGALURU (Reuters) - Film and entertainment group Eros International Plc on Monday swung to a loss in the fourth quarter due to an impairment charge and a rise in costs, sending its U.S-listed shares down more than 6% in premarket trade.
The company, which owns a vast library of Bollywood movies and music, has been struggling after a rating agency categorised its Indian subsidiary’s debt at “default” levels due to delays in payments.
Eros has been placing its bets on its digital streaming unit, Eros Now, to gain market share, especially in India, where it rivals Star India’s streaming platform Hotstar, Netflix Inc and Amazon Prime. Eros said the unit had 18.8 million subscribers at the end of the quarter.
Eros said it booked an impairment loss totalling $423.3 million during the quarter, mainly due to high discount rates and “changes in the market conditions.”
Eros International’s operating loss was $4.4 million in the quarter ended March 31, compared with a profit of $20.3 million last year. Revenue from India fell 1.6% to $24.6 million in the quarter, the company said.
The company’s U.S listed shares were down more than 6% at $1.72 in New York in premarket trade.
Reporting by Krishna V Kurup in Bengaluru; Editing by Rashmi Aich