UTV Software posts net loss of Rs 230 million for Q1

MUMBAI: UTV Software Communications reported a consolidated net loss of Rs 233 million (Rs 23.33 crore) for the quarter ended 30 June, 2009, as against a net profit of Rs 198 million (Rs 19.88 crore) in the corresponding period last year.

The company’s total revenues declined to Rs 1.15 billion (Rs 115.36 crore) as compared to Rs 1.37 billion (Rs 137.07 crore) in the same period last fiscal.

The company’s films division posted a loss of Rs 95.9 million (Rs 9.59 crore) during the quarter as compared to a profit of Rs 247.6 million (Rs 24.76 crore) in the corresponding quarter last fiscal. UTV did not release any new films during this quarter due to the two month standoff between producers and multiplex owners over revenue sharing terms. Revenues from films dropped to Rs 265 million (Rs 26.5 crore) this quarter as compared to Rs 930 million (Rs 93 crore) in the same quarter last year. However, pertinent to note here is that there was no film release during this quarter and revenues primarily came in from the previous year’s library.

Additionally, UTV also did not release any new games in this quarter. The consolidated loss for the quarter also included Rs 104 million (Rs 10.4 crore) loss in the broadcasting vertical. On the other hand, the company’s television production vertical reported 23% lower profits this quarter. Revenues grew in TV software from Rs 256 million (Rs 2.56 crore) to Rs 281.5 million (Rs 2.81 crore).

UTV expects Q2 to be negative with only three movies namely Agyaat, Kaminey and Aage Se Right slated for release. The company also expects syndication revenues to flow in as also ongoing realization of revenues on The Happening. Moreover, the recent announcement made by UTV to merge its motion picture entity listed at AIM of London stock exchange is expected to drive value through 100 per cent consolidation of its most profitable business.

However, the company is of the opinion that Q3 and Q4 will be positive with positive results for the current fiscal. A total of 12 movies are slated to release during this fiscal.

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