UTV net profit up 86% to Rs 328 million in Q2 2008

Mumbai: UTV Software Communications has reported a net profit of Rs 328 million in Q2 2008, which is 86 per cent up from Rs 176 million in the corresponding period last year. The company’s total operating revenues reported a growth of 138 per cent to Rs 1,708 million from Rs 719 million.

For the Half year ended September 30 the company’s total operating revenues reported growth of 140 per cent to Rs 3,079 million from Rs 1,281 million. Net profit reported growth of 117 per cent to Rs 579 million from Rs 267 million.

The Company has consolidated the financials of UTV-US, IG Interactive, UMP PLC, UTV TV Content, UTV New Media, UTV Games and UTV Global Broadcasting and the group’s indirect subsidiaries Ignition Entertainment Limited, Indiagames Limited, UTV-Motion Pictures (Mauritius), ITNation Media, RB Entertainment, True Games Interactive, GenX Entertainment and UTV Entertainment Television (UETL) and UTV’s television joint ventures Smriti Irani Television Limited and Windmill Entertainment Limited.

UTV Software Communications chairman and CEO Ronnie Screwvala said, "We had yet another buoyant quarter with strong revenue growth across all businesses. This has been possible through our aggressive approach and the company’s strategic direction. The overall performance epitomizes our underlying strength to create high quality content and our proven ability to leverage it across all our businesses and geographies. While we are being realistic about the challenging global economic conditions, we will continue to expand our portfolio and explore tremendous growth opportunities in both domestic and international markets."

"This year has been rewarding especially in the motion picture business, where all our movies have made a mark in respective genres and markets. This strengthens our belief in what we were set out to achieve as a scalable yet profitable studio model with a difference," he added.

"We have made sincere efforts in revamping our Television Content business in past few months and results are very exciting. This has also been possible with new shows added by our joint ventures and our own productions in the regional space," Screwvala said.

"In the Interactive business segment, both our acquisitions of Ignition and Indiagames are on target that was set out for the current fiscal. Indiagames has witnessed a consistent quarter on quarter growth, where as we anticipate second half of this fiscal to be extremely buoyant for Ignition. During the quarter we also acquired an online gaming company in US, True Games to complete our offering from Gaming standpoint. This completes our capabilities to develop, publish and deliver gaming content across all consoles, online and mobile platforms."

He added, "This has been the first quarter of consolidation for our Broadcasting business financials. Our strategy has been to launch TV channels in carefully-chosen specialty segments with tight costs models. The channels launched in last few months have faired well with respect to viewership as well as revenues, which are in line with our expectations. The quarter gone by has witnessed completion of Disney transaction with infusion of Rs 1.18 billion in our Broadcasting business."