Indian streaming firm Eros International sees shares plummet


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Editor

| 27 October 2015





The so-called Netflix of India, Eros International, has shown it is nothing like the SVOD leader in the eyes of local markets as it has seen a 20% plummet in share price on 26 October.


According to a report in the Financial Times, investors seem to have headed for the hills over fears about the company's online streaming arm's accounting policies and growth rates.

Despite attempting to attract investment to bolster its proposition before the real Netflix arrives in India sometime in 2016, analysts at Wells Fargo on 23 October downgraded the stock in a note that, the FT added, cast doubt on management reassurances about the way the company accounted for revenues, notably in the United Arab Emirates. Moreover, doubt was cast on reported user numbers for the Eros Now streaming platform.

In response to the accusations, Eros issued a statement to the Bombay Stock Exchange denying wrongdoing and criticising speculative media for the slide. "There has been no material change to the previously announced strong fundamentals of the company," the statement asserted.