UTV Net Profit touch Rs 271 million Mark

UTV Software Communications Limited (UTVSOF.BO, UTVSOF.NS) has announced its results for the quarter ended March 31, 2008. The Year gone by – Financial Review of 4Q08 and FY2008 The Company reported a growth in Operating Revenue of 150% year on year from Rs 1,749 million to Rs 4,375 million, Operating Profit of 1,403% from Rs 40 million to Rs 601 million and growth in PAT of 63% Rs 470 million to 768 million. However, if one excludes the Rs 263 million one-time capital gains in the previous year on the sale of Hungama TV, then the growth in PAT is actually 271%.

The two businesses leading the growth are the Motion Pictures business that has reported a revenue growth of 241% and Interactive & Gaming that has shown a growth of close to 250%.

Operating revenues of Rs 1,870 million during the Fourth quarter of the fiscal under consideration, is the single highest quarter for the company till date and represents a healthy run rate going into the next financial year.a Percentages are calculated after excluding capital gain of Rs. 263 million on sale of Hungama TV in FY2007.

The Company has consolidated the financials of UTV-US, UTV-UK, UTV-IOM and UTV BL and the group’s indirect subsidiaries Ignition Entertainment Limited, Indiagames Limited, and UTVMauritius and UTV’s television joint ventures Smriti Irani Television Limited and Windmill Entertainment Limited. The Board of Directors in its meeting held oday, has taken on record the un-audited consolidated financial results of UTV Software Communications Limited and its subsidiaries.

Ronnie Screwvala, Chairman and CEO of the Company said, “We are very pleased to note that we have concluded this financial year on a strong note. We have been successful at developing an expanded opportunity pipeline resulting from our re-entry into the broadcasting business, our recent gaming acquisitions in the Interactive vertical, our TV joint ventures and our enviable slate of movies in Hindi and Hollywood space. The long term outlook is better than ever, given the initiatives that we are implementing in all our four verticals i.e. Television, Movies, Interactive and Broadcasting. We have also further strengthened our team during the quarter in order to ride the
anticipated growth. Above all, increase in strategic stake by Disney demonstrates the confidence we and others have in our company and shows our commitment to maximizing long-term shareholder value.

Our Movie business has started realizing the benefits of its IP focus and studio model approach which have actually exceeded our expectations. This quarter has again witnessed a triple revenue growth which is a result of our perseverance and commitment to produce and entertain our viewers with good quality cinema.

We have made sincere efforts to revamp our Television Content business where we are currently following inorganic growth. We have already formed two joint ventures with well known names like Smriti Irani and Shekhar Suman jointly producing shows for various channels. The Company’s own broadcasting business and a few inorganic growth opportunities will further fuel the growth of this business.

Our Interactive business comprising animation and gaming is a truly global business model, with little dependence on Indian market. In the fast growing interactive space in South East Asia, we are the first Indian players to be present across all platforms for games i.e. consoles, mobile and online. We are currently developing our own high end console games and mobile games and reducing dependence on pure publishing and distribution business. Therefore, what we see now is merely the beginning of the high growth trajectory in the years to come.

In our Broadcasting venture, we are in an organic start up mode where we have recently launched a bouquet of four channels i.e. Bindass, Bindass Movies, UTV Movies and World Movies. In this fragmented industry, success is about finding opportunities and need gaps giving the Company a first mover advantage which gives one an edge over competition. This is the approach the Company has adopted in its broadcasting business. The Company has also successfully built its own distribution platform for all its channels ground up which has exceeded all expectations by providing excellent connectivity and reach to all channels since launch.”

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