UTV operating revenue rises 39% in Sep quarter

UTV operating revenue rises 39% in Sep quarter
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First Published: Tue, Oct 27 2009. 10 56 PM IST

Good show: A still from Kaminey. The film’s success contributed a good deal to the firm’s results, says UTV founder Ronnie Screwvala.
Good show: A still from Kaminey. The film’s success contributed a good deal to the firm’s results, says UTV founder Ronnie Screwvala.
Updated: Tue, Oct 27 2009. 10 56 PM IST
Mumbai: Media and entertainment firm UTV Software Communications Ltd reported a 39% rise in operating revenue in the three months ended 30 September, helped by the success of the film ‘Kaminey’ that had Shahid Kapoor and Priyanka Chopra in the lead roles.
Good show: A still from Kaminey. The film’s success contributed a good deal to the firm’s results, says UTV founder Ronnie Screwvala.
Operating revenue for the second quarter of the current fiscal was Rs237.7 crore, compared with Rs170.9 crore in the same three months last year. Income before interest, other income and exceptional items increased to a Rs18.1 crore from a loss of Rs9.4 crore in the year-ago period.
The company said over half of its revenues (53%) came from its film production business, followed by games content (25%), broadcasting (11%), television (10%) and new media (1%).
The movie production business had hit a roadblock in the June quarter due to stand-off between movie makers and cinema hall operators, it said. The company released nine movies between July and September, including three Disney productions that were released as part of an exclusive distribution deal with the US firm.
The Hindi movies it released in the quarter included ‘Agyaat’, ‘Kaminey’ and ‘Aage Se Right’.
The company is looking to close the financial year to 31 March with a 35% growth in revenue, UTV founder-promoter Ronnie Screwvala told Mint.
“The quarterly results show that we are well on our way to doing that,” Screwvala said. “Our movie production business has been successful because of a combination of new releases and syndication. The success of ‘Kaminey’ (with collections of about Rs50 crore) has contributed a good deal to our results.”
A primary driver for the company is their games business, Screwvala said. “We launched two new titles for the US market this quarter, ‘King of Fighters XII and Muramasa: The Demon Blade’.”
According to Screwvala, the television broadcast business would breakeven by next year. “As a network we’ve done well and news is a big part of that. Our tie-up with Bloomberg (for its business news channel) gives us a great deal of international content and we are clearly one of the market leaders,” he said. He declined to comment on Bloomberg Lp’s plan to pick stake in his business news channel. UTV operates channels such as UTV movies, Bloomberg-UTVi, Bindass and Bindass Movies.
Nikhil Vohra, managing director of brokerage firm IDFC-SSKI Securities Ltd, said that a lot of the capital inflow for UTV has come from the film ‘The Happening’, which fetched them Rs43 crore. He added that the firm has made capital investments worth Rs2,200 crore in movie production, gaming and television broadcast and that’s seems to be paying off.
“The movies business alone has fetched them Rs130-odd crore this quarter, while broadcast has fetched them Rs26 crore,” Vohra said.
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First Published: Tue, Oct 27 2009. 10 56 PM IST