UTV’s consolidated net soars by 335%

MUMBAI: UTV Software Communications posted a consolidated net profit of Rs 176 million (Rs 17.6 crores) for the quarter ended 30 September, 2007, which is up 335 per cent from the corresponding quarter last year. The growth has been driven by the company’s movies, broadcasting and interactive businesses.


The company’s consolidated revenues showed a growth of 89 per cent at Rs 735 million (Rs 73.5 crores), EBITDA reported growth of 234 per cent as compared to the same quarter last fiscal.


However, on a standalone basis, the company reported a net loss of Rs 28.4 million (Rs 28.4 crores) for the quarter ended September 2007, when compared with a net profit of Rs 4.9 million (Rs 49 lakhs) in Q2FY07. UTV’s total revenue stood at Rs 376.4 million (Rs37.64 crores) during the quarter, which was up 23.65 per cent from Rs 304.4 million (Rs 30.44 crores) in Q2FY07.


UTV Software Communications CEO Ronnie Screwvala said, “Our movie business has witnessed a triple digit revenue growth this quarter over Q2FY07 and has kicked off the strongest multi-year movie pipeline in the company’s history. Such a strong line up of films has catapulted UTV into the largest Indian movie production house with multi-genre, multi-budget and multi-language films. One of the key steps taken to create good shareholder wealth was to hive of our movies business into an overseas subsidiary, which was then listed on the AIM of LSE.”


The company has consolidated financials of UTV-US, UTV-UK, UTV-IOM and its indirect subsidiaries Ignition Entertainment Limited and UTV-Mauritius. The Board of Directors in its meeting held today, has taken on record the un-audited consolidated financial results of UTV Software Communications Limited and its subsidiaries.


Screwvala added, “UTV has entered into a very exciting phase where it foresees a high growth trajectory for itself in the years to come. We have achieved strong revenue and profit growth driven primarily by our three strategic verticals of movies, broadcasting and interactive business. These results have laid solid foundation and provided strong momentum as we head into the second half of fiscal 2008, which is shaping up to be a strong year for growth and investment.”


Speaking about the company’s new broadcast venture Bindass, Screwala said, “Our broadcasting venture is again a growth story where investments have been made, which will generate tremendous value going forward. We launched two of our youth channels Bindass and Bindass Movies on 24 September and these channels have been received well by the TG. We have created a unique combination of channels to reach the largest segment of Indian audiences – the 16-34 and plan to touch their lives in every aspect like TV, mobile, internet, events, and merchandise etc.”


The company expects its interactive business comprising animation, VFX and gaming to add to the revenues by Q4 of this financial year. “Our interactive business, which we would like to call a ‘Tomorrow’s’ business, including animation, VFX and gaming, has always been known for its pioneering and out-of-the-box approach and our acquisitions in this space will broaden our presence in this virgin sector of the media and entertainment industry. What we see now is only the tip of the iceberg but the true impact of this M&A and integration will be seen by Q4 of this financial year and thereafter as another high growth and margin business for UTV,” Screwvala stated.


The company has in the recent past collaboration with Virgin Comics to create four original superheroes in India. It will also be co-producing M. Night Shyamalan’s The Happening. Additionally, UTV Motion Pictures also entered into the Telugu film market with Mahesh Babu starrer Athidi.