UTV Software Communications Ltd has reported a 140 per cent jump in net profit to Rs 271 million for fourth quarter ended March 31, 2008. The company has also reported a 150 per cent growth in operating revenues year-on-year from Rs 1,749 million to Rs 4,375 million. Operating revenues for the quarter ended March 31, 2008 went up by 363 per cent to Rs 1,870 million.
The two businesses leading the growth are the motion pictures business, which has reported a revenue growth of 241 per cent, and interactive and gaming business that has shown a growth of nearly 250 per cent.
The company has consolidated the financials of UTV-US, UTV-UK, UTV-IOM and UTV BL and the group’s indirect subsidiaries Ignition Entertainment Ltd, Indiagames Ltd, and UTV-Mauritius and UTV’s television joint ventures Smriti Irani Television Ltd and Windmill Entertainment Ltd.
Commenting on the company’s results, Ronnie Screwvala, Chairman and CEO, UTV Software Communications, said, “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 – 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 maximising long-term shareholder value.”
“Our movie business has started realising the benefits of its IP focus and studio model approach, which have actually exceeded our expectations. 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,” he added.
Screwvala further said, “In our broadcasting venture, we are in an organic start-up mode where we have recently launched a bouquet of four channels – 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.”