UTV posts profit of Rs40.2 crore1 min read . Updated: 16 Jul 2010, 12:48 AM IST
UTV posts profit of Rs40.2 crore
Mumbai: Riding on its motion picture business, UTV Software Communications Ltd, with interests in broadcasting, television content, games and new media, has posted a net profit of Rs40.2 crore in the quarter ended 30 June compared to a net loss of Rs31.8 crore in the same quarter last fiscal. Its total operating revenue rose by 132% to Rs208.2 crore from Rs89.8 crore.
The company derived 55.6% of its revenue from its films business, 24% from broadcasting, 12% from television content, 6% from games and the rest from new media. The movie business benefited from the good performance of Prakash Jha’s political film Raajneeti.
Ronnie Screwvala, founder and chief executive of UTV Software, said the main contributor to the company’s growth was its motion picture business. Nearly 30% growth came from syndication of its library of films and additional revenue from pre-sales for television and mobile.
“Over the last six months, we’ve seen a dynamic growth of the television industry and we’ve got right back in the saddle for television content. This is an area of high growth and high leadership for us," Screwvala said,
UTV works closely with Sun TV in the south and calls itself a quasi broadcaster on the network. “We buy slots, sell airtime to advertisers and put our programmes on the network. We do over a 125 hours a month on Sun and 50% of the shows are our own shows," Screwvala said.
Later this month, the company will launch a daily show on Imagine TV owned by Turner Broadcasting Pvt Ltd and another one on Star Plus in September. Three shows on Bindass, including the new season of Emotional Atyachaar, are also in the pipeline other than three dailies and two bi-weeklies on the Sun network.
For UTV, new media will continue to be a key driver. UTV audio cinema already has about 1.5 million subscribers, contributing revenue of ₹ 3.5 crore per month.
“The impressive revenue growth has come from a sharp recovery in the movies business; in the same quarter last year, the business was impacted by the stand-off between multiplexes and
producers," said Mihir Shah, equity research analyst at Alchemy Share & Stock Brokers Pvt. Ltd.
UTV Software Communications Ltd rose 1.27% to close at Rs429.95 on Thursday on Bombay Stock Exchange. The benchmark index, Sensex, dropped by 0.16% to close at 17, 909.46 points.