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(AFX UK Focus) 2009-10-05 07:58
Eros says Q2 strong, proposes IPO for Indian unit
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  • SAYS Q2 STRONG ON ROBUST TV AND DIGITAL REVENUE * SEES MATERIAL REDUCTION IN NET DEBT BY FINANCIAL YR-END * PLANS IPO OF INDIAN UNIT
    Oct 5 (Reuters) - Indian movie distributor Eros International Plc said on Monday it had a strong second quarter and continued to trade in line with its expectations, aided by robust television and digital revenue.
    The AIM-listed company said it planned to list its wholly owned Indian unit, Eros International Media Ltd, on the Bombay Stock Exchange.
    The company said cash generation during the second quarter was in line with expectations and net debt at Sept. 30 was at a similar level to March 31.
    "Given the strong release schedule and anticipated cash generation in the second half, net debt is expected to show a material reduction by the financial year-end," the company said in a statement.
    Eros said it expected the proposed initial public offering (IPO) in India and the recent appointment of A.P. Parigi as chief executive for the Indian operations to drive the group's growth and consolidation within the country.
    The funds raised from the Indian IPO would not result in a dilution of the company's ownership of more than 25 percent, it added.
    Eros shares closed at 188.5 pence on Friday on the London Stock Exchange.

    (Reporting by Tresa Sherin Morera in Bangalore; Editing by Deepak Kannan) Keywords: EROS/OUTLOOK (tresa.sherin@thomsonreuters.com; +91 80 4135 5800; Reuters Messaging: tresa.sherin@thomsonreuters.com)

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