KOLKATA: Multinational media entertainment company Eros STX Global Corporation has reported $144 million revenue million for the six months ended 30 September 2020, compared to $210 million in the prior year period.
The decline in revenue has been attributed to significant reduction in global film releases resulting from the negative effects of Covid2019, partially offset by revenue growth from the STX film library.
Operating expenses stood at $152 million and, excluding merger related costs, were $134 million, for the period, compared to $276 million in the prior year period. This decline was driven by significantly lower film release marketing and distribution costs due to the pandemic.
“The company is in the process of finalising its complete financial statements for the six months ended 30 September 2020. Completing the full financial statements has required additional time and resources due to the complexities associated with converting legacy Eros from IFRS to US GAAP and to legacy STX’s accounting policies, and the ongoing deployment of a new and integrated SAP accounting platform. The company expects to issue complete and reviewed financial statements for the interim period by 30 April 2021,” it stated in a filing.
As legacy STX was deemed the accounting acquirer in the business combination, the consolidated financial results for the six-month period ended 30 September 2020 include only two months of legacy Eros, starting on 31 July 2020 when the merger of Indian film and entertainment studio Eros International, and the American film studio STX Entertainment closed.
Net cash provided by operating activities was $13 million and, excluding merger related cash costs, was $27 million, for the six months ended 30 September 2020.
Operating Loss of $7 million and, excluding merger related costs, operating profit of $10 million, for the six month period compared to an operating loss of $65 million in the year ago period.
As of 30 September 2020, total debt was $384 million and cash on hand was $82 million. The company’s fiscal 2021 ending net debt balance is expected to be below the $325 million guidance provided on the investor call held on 4 November 2020.
These interim results are a subset of the previously announced preliminary financial results for the first nine months of fiscal 2021, ended 30 December 2020.
