| MUMBAI:
Weaknesses in movie and gaming revenues, along with investments in new media and
broadcasting, have pushed UTV Software Communications into first-quarter loss.
The second quarter
would continue to be weak, given the continued investments in new verticals and
only three movie releases.
UTV,
which posted a net loss (before minority interest) of Rs 317.51
million for the quarter ended 30 June, expects a rebound in
the third and fourth quarter as it deepens its movie releases.
Movie
releases were frozen due to the multiplex strike and UTV strategically decided
to shut out its pipeline during the IPL and T20 World Cup matches held in the
April-June period. Revenue
declined 15.84 per cent to Rs 1.15 billion in the first quarter, from earlier
Rs 1.37 billion, as there were no film releases during the quarter. UTV booked
Rs 145 million from last year's Hollywood release, The Happening, in this
quarter. The
interactive gaming segment also saw no new releases, leading to a 36.29 per cent
year-on-year decline in net income from sales and services to Rs 865.15 million.
UTV will
kick-start its movie release with Ramgopal Varma's horror film Agyaat on
7 August. The company plans to release 14 films, including Kaminey, Main
Aur Mrs Khanna and What's your Raashee, during the fiscal.
UTV, which had posted a net profit of Rs 250.90 million in
the first quarter of the previous fiscal but slipped into
the red in the fourth quarter, also hopes broadcasting revenues
to gather momentum.
For
the full-fiscal ended 31 March 2010, UTV expects to be "overall positive"
despite the broadcasting, gaming and new media verticals being in investment mode.
UTV's
expenses in the quarter rose to Rs 1.51 billion, up 25.60 per cent. The
company also clarified that revenues from the consolidated loss include a non
cash cost of Rs 100 million in the motion picture business for a write down of
previous year's inventory. Broadcasting
UTV has suffered an operating loss of Rs 104.17 million from the broadcasting
sector. The revenue from the segment stood at Rs 176.94 million. Capital
employed towards the broadcasting sector is Rs 3.76 billion. Movies
Revenue from movies fell sharply by over 75 per cent to Rs 265.17 million in the
quarter. UTV suffered an operating loss of Rs 95.97 million from the segment,
as against a profit of Rs 247.64 million a year ago. UTV
has deployed a capital of Rs 9.21 billion for movies. Television
Production
The operating profit in this segment came down to Rs 10.83
million, from Rs 13.98 million in the earlier year. Revenues stood at Rs 281.60
million, as against Rs 256.29 million. "Our
TV content production business, on the back of the success of Dance India Dance
(Zee TV) and others, will see shows on air from the third quarter of this
fiscal combined with a thrust in programmes produced in Tamil and Telugu languages
as well," the company said. The
capital deployed for the segment stood at Rs 319 million. Gaming
UTV suffered an operating loss of Rs 96.41 million in the quarter, as against
a loss of Rs 33.03 million a year ago. Revenue stood at Rs 117.16 million (from
Rs 145.59 million in the earlier year). UTV
said, "Indiagames will record growth, Ignition will see continued growth
through release of its publishing games while it readies itself for its three
IPs release in 10-11. True Games will see a launch of its online games and platform
in Q4 of this year." The
company's capital deployment stood at Rs 3.98 billion for gaming content. New
Media
In this segment, UTV's operating loss stood at Rs 21.08 million
(against Rs 6.38 million). Revenue was Rs 27.88 million, compared to Rs 26.08
million a year ago. "Tough
in investment mode, new media has a strong focus on building a future business
model on web and mobile platforms in the entertainment, the business and the technology
space," said UTV. The
capital deployment towards this segment is Rs 356.45 million. | 
