UTV Software Q2 net up on broadcast biz, lower costs

UTV Software Q2 net up on broadcast biz, lower costs

Mumbai: Media firm UTV Software Communications’ September-quarter net profit surged, helped by a jump in revenue from its television segment and reduced costs.

The company grew its consolidated net profit almost five-fold year on year to Rs401.8 million

“Last year, we were in our investment mode, and second is we have got our cost efficiency as well," Ronnie Screwvala, chief executive officer, told Reuters.

“It’s just better revenue optimisation in broadcasting, better revenue optimisation in movies and better cost controls."

Total expenditures fell 10.7 % to 1.96 billion.

Net sales inched up 1.4 % to Rs2.38 billion while sales from the television segment rose 62 %.

Television accounted for 34.3 % of UTV’s total revenue in the quarter under review.

Going forward, UTV expects movies to fetch 40-45 % of its revenue, television 30-35 % and the gaming and interactive segment 20-30 %.

The company’s gaming and interactive segment contributed 15 % of its revenue in the September quarter.

“In the second half of the year, while the other divisions will also grow, the highest growth will come from games," Screwvala said.

Having created original video content for distribution on the 3G and 4G spectrum, UTV said, it expects to take a dominant share of this emerging market.

The company has tied up with telecom firms for content for movies, television as well as mobile games, but Screwvala declined to provide more details on these deals.

Shares of the Mumbai-based company closed down 4.8 % at Rs529 while the larger market closed down 1.02 %.