| MUMBAI:
UTV Software Communications' four entertainment channels, still in their early
stage of infancy, have suffered a combined operating loss of Rs 282.71 million
for the fiscal ended 31 March 2009. UTV's
revenue from broadcasting, led by the Hindi movie channel, stood at Rs 892.9 million.
Amid tight cost controls, UTV's capital deployment towards the broadcasting business
was at Rs 3.5 billion. UTV
Movies would turn profitable in the year, the company said in its guidance for
the current fiscal. "Overall, all four channels' combined Q4 would inch to
a breakeven quarter. However, cumulatively it would be a loss year,” UTV
cautioned. The
company said that its broadcasting segment with four entertainment channels (Bindaas
Movies, Bindaas, World Movies and UTV movies) would continue to be in "investment
mode" in 2009-10 and "there is no question of margins.” UTV
said its broadcasting segment would record revenue growth, but as FY 2010 is its
second year of operations, it would contribute a loss to the consolidated financials
of the company. UTV,
however, considers broadcasting as a more stable business vertical and believes
that as scale, profitability and subscription model kicks in, this will create
value in “regular cash flow”. “Post
break-even, broadcasting is a more steady margin and cash flow business. UTV’s
strategy and reason to grow in the genre and demographic specific space is just
that,” the company said. | 
