UTV Software posts net profit of Rs 91 million


    MUMBAI: UTV Software Communications Limited has posted a net profit of Rs 91 million (Rs 9.1 crores) for the quarter ended 30 June, 2007.

    The consolidated revenue of the company reported a growth of nine per cent at Rs 571 million (Rs 57.1 crores) with the EBITDA and net profit growing at 181 per cent and 165 per cent respectively as compared to the same quarter last fiscal.

    The surge in profit margins is largely contributed by the gaming business, which has been integrated in the company from this quarter as well as its broadcast activity having a positive impact on the TV production business.

    The company has consolidated financials of UTV-US, UTV-UK, UTV-IOM and its indirect subsidiaries Ignition Entertainment Limited and UTV-Mauritius.

    UTV Software Communications CEO Ronnie Screwvala said, “This is the beginning of a very high growth phase for UTV. Over the last year we have been working to re-invent our business model so as to be at the top end of the value chain as well as have leadership or pioneering positions in each of our segments and I believe we have achieved this well.”

    “Our movie business has attained top brand recall both in India and globally due to the content we have focused on and this year we see revenues and EBITDA growing manifold compared to the previous years. Unlocking value through our listing of the business on the LSE has created good shareholder wealth, and that’s just a start,” he added.

    “Our broadcasting initiative with a very unique combination of cutting edge entertainment channels for the largest segment of Indian audiences – the 16-34, will transform UTV’s strengths in TV and broadcasting into a formidable bouquet of channels for the Asian Diaspora worldwide,” said Screwvala.

    “UTV is always known for its pioneering and out-of-the-box approach and what we have aggregated in our interactive business in animation, VFX and gaming has given us a head start in a “Tomorrow’s” business. 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,” he said.

    The company also listed its motion picture subsidiary UTV Motion Picture Plc on Alternative Investment Market (AIM) of London Stock Exchange. UTV-IOM through its subsidiary based in Mauritius houses all movie production businesses of the Group. The company has raised $ 70 million at a dilution of around 23 per cent through this listing. Funds will be used to fund the production and distribution of its increasing slate of movies. UTV Software Communications Limited owns 77 per cent of the subsidiary.

    UTV has also invested into a broadcasting venture UGBL and marked re-entry into this segment (after Hungama TV). The company is expected to launch around eight television channels between August 2007 and June 2008 – the first being Bindass, which will be launched in August 2007.