×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

UTV Software Q3 net rises on gaming, television

UTV Software Q3 net rises on gaming, television
Comment E-mail Print Share
First Published: Thu, Jan 27 2011. 12 25 PM IST
Updated: Thu, Jan 27 2011. 12 25 PM IST
Mumbai: Media firm UTV Software Communications said on Thursday its third-quarter profit rose 6%, as the gaming and television businesses boosted revenue.
The company, in which Walt Disney Co holds 50.44% as of Dec. 2010, saw revenue from gaming and interactive segment more than double to Rs459.3 million. Revenue from its television segment jumped 15% to Rs102 crore.
“Gaming is critical for them for the future, our whole recommendation for the stock is based on gaming,” an analyst, who did not wish to be named, said.
“The monetization in gaming has not happened so far and once it happens it will drive the stock higher,” the analyst, who rates the stock “neutral,” said.
UTV Software, which operates its gaming segment via units Ignition, True Games and Indiagames, has been aggressively growing its gaming segment over the past two years.
However, profitability from the company’s movies segment dropped 37%.
“Average margins from the movies segment would be 35% to 40%, but this time they have come down to 25%,” the analyst said. “Movies like ‘Guzaarish,´ ‘Tees Maar Khan´ did not do as well as expected.”
The analyst expects a similar performance in the fourth quarter, driven by gaming and movies, on the back of recent releases such as ‘No One Killed Jessica,´ and ‘Dhobi Ghat.´
Earlier in the day, UTV Software posted a consolidated December-quarter net profit of Rs399.8 million, compared with Rs378.2 million a year ago. The Indian media sector has just come out of its strongest quarter marked with festivals and holidays resulting in a strong pipeline of movies and robust advertising revenue.
Shares of the Mumbai-based company, which the market values at Rs2179 crore, rose as much as 2.8% to Rs537.95 in morning trade. At 12.28 p.m., they were trading up 1.75% at Rs532.50 in a weak Mumbai market.
Comment E-mail Print Share
First Published: Thu, Jan 27 2011. 12 25 PM IST