UFO Moviez Q2 consolidated revenue increases 107% to Rs 26.5 crore

The company's in-cinema advertising platform has the power to impact almost 2 billion viewers annually through 3,503 screens under the PRIME and POPULAR channels across 1,194 cities & towns

e4m by exchange4media Staff
Updated: Nov 13, 2021 2:00 PM  | 2 min read
UFO Moviez

UFO Moviez's consolidated revenue for the quarter ended 30th September has jumped 107% to Rs 26.5 crore from Rs 12.8 crore in the same quarter of the previous fiscal. EBITDA loss narrowed 30% to Rs 15.2 crore from Rs 21.8 crore. Net loss was down 8% at Rs 28.3 crore from Rs 30.7 crore.  The company's in-cinema advertising platform has the power to impact almost 2 billion viewers annually through 3,503 screens under the PRIME and POPULAR channels across 1,194 cities & towns.

In the quarter under review, theatres have reopened from July 2021 in a staggered manner, except for Maharashtra, which resulted in Hindi movies delaying their release dates. However, in the South and other regional markets, movies were released despite restrictions on seating capacity. The release of these movies led to a gradual revival in the Company’s revenue and a reduction in cash losses.

The Board of Directors, in its meeting held on November 3, approved the preferential allotment of 93,99,933 equity shares aggregating to Rs 96.82 crore to Nepean Focused Investment Fund, a scheme of investment of Nepean Investment Trust II, a category II alternative investment fund registered with Securities and Exchange Board of India at a price of Rs 103.01 per equity share, as per applicable rules and regulations. This preferential issue is subject to necessary approvals.

Maharashtra and Kerala allowed the reopening of theatres beginning on October 22, 2021 and October 25, 2021, respectively. Karnataka, Telangana, Rajasthan, Odisha, and Andhra Pradesh are operating at 100% occupancy, while most other states are permitted to operate at 50-60% capacity. “During the quarter, there were no Hindi movie releases as theatres in major markets like Maharashtra were not permitted to reopen. However, regional movies performed well at the box office. With the opening of Cinemas in Maharashtra and Kerala, Hindi and Non-Hindi markets are now fully operational,” said UFO Moviez Joint MD Kapil Agarwal.

“Recently, Sooryavanshi was released on more than 1600 UFO screens and the much-awaited Rajnikanth movie, Annaatthe, distributed by UFO in the Hindi circuit, was released in more than 700 UFO screens in all languages. Despite the occupancy restrictions, both the movies had a blockbuster opening weekend, both collecting Rs 100 plus crores each worldwide, reaffirming the importance of Cinemas. Also, the movie pipeline for the next 6 to 8 months is extremely strong. We expect the film exhibition industry to recover at a rapid pace and are confident that UFO’s business and financial performance will be restored very soon.”

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