| MUMBAI:
UTV Software Communications' fourth-quarter consolidated net profit slumped 51
per cent, contributed by losses from broadcasting, gaming and new media divisions. Net
profit for the quarter ended 31 March 2009 stood at Rs 132.30 million, down from
Rs 270.75 million a year ago. Net
income from sales and services (operating income) has come down by 2.66 per cent
to Rs 1.82 billion. Total income, however, grew by 7.9 per cent to stand at Rs
2.09 billion. "In
2008-09 three of our verticals - broadcasting, gaming and new media - contributed
an operating loss of approximately Rs 460 million. Had we not invested in these
activities, our operating profit would have been higher by the same amount,"
UTV said. For
the full fiscal, UTV's consolidated net profit rose 30 per cent to Rs 1.01 billion
as against Rs 776.90 million in the previous year. Total
income climbed 53 per cent to Rs 6.77 billion, up from Rs 4.42 billion. Net income
from sales and services (operating income) was Rs 6.07 billion for the period,
while UTV earned Rs 696.59 million from other operating income. UTV
declared that its other operating income in 2008-09 includes foreign exchange
gain for its investment into the Hollywood movie, The Happening. It also
includes forex gain from sale of games in the US due to the strengthening dollar. Broadcasting
with four entertainment channels (Bindaas Movies, Bindaas, World Movies and UTV
movies) will continue to be in "investment mode" in 2009-10 as will
True Games, a gaming company which UTV acquired in US. New media and UTV's other
gaming subsidiaries, however, are expected to be profitable. The
company consolidated the financials of UTV Communications (USA) LLC, IG Interactive
Entertainment Ltd, UMP Plc, UTV Global Broadcasting Ltd, UTV TV Content Ltd, UTV
Games Ltd, First Future Agri & Developers Private Ltd, UTV New Media Ltd and
the group's stepdown subsidiaries - UTV Motion Pictures (Mauritius) Ltd, Ignition
Entertainment Ltd, Indiagames Ltd, True Games Interactive, Inc, Genx Entertainment
Ltd, UTV Entertainment Television Ltd, RB Entertainment Ltd. & ITNation Media
Ltd. and the Joint Ventures - Smriti Irani Television Ltd. & Windmill Entertainment
Ltd. Broadcasting Broadcasting
revenue stood at Rs 345.32 million for the fourth quarter of FY'09. For the year,
the revenue stood at Rs 892.90 million. Capital
employed towards the broadcasting sector was Rs 3.50 billion, UTV said. Movies Revenue
from movies fell in the fourth quarter to Rs 874.20 million, a dip of 25.77 per
cent from Rs 1.18 billion a year ago. For the full fiscal, the revenue stood at
Rs 2.76 billion, up from Rs 2.64 billion. UTV
has announced a list of 25 movies set for release in FY10 and FY11. The slate
includes Kaminey, What's your Rashee, Wake up Sid, Hook ya Crook animation
movies Arjun and Alibaba & 41 Thieves.
The
company had a capital deployment of Rs 9.48 billion for movies.
Debt
UTV
said that net debt for the group - including subsidiaries - stands at Rs 3.47
billion as of end March 2009 and it would not go past a debt equity ratio of 0.5:1. Warrants UTV
will be raising Rs 750 million through the issue of non-convertible debentures
on private placement to LIC Mutual Fund Assets Management Company. Future
projections The
company has projected that going forward, it expects revenues from television
content to be "stable" in FY10, with EBITDA margins at 5-6 per cent.
The motion pictures business will see "good growth" as its slate for
the year is larger than in 2008/09. New
media and gaming units are expected to be profitable in FY10. UTV
said that the first quarter of FY 2010 is likely to be challenging with no movie
releases in multiplexes and loss of television audience to the Indian Premier
League. "Also, there are no game releases in Q1. In broadcasting too, there
will be a loss," the company added. Also
Read: UTV
ups stake in broadcasting arm as valuation skids Disney,
promoters up stake in UTV to 83 per cent UTV
to put in $10 million, hold 20% in biz news channel | 
