BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) reported a 5.2 percent year-over-year (y-o-y) growth in advertising revenue for the quarter ended 31 December 2016 (Q3-17, current quarter). The company reported advertising revenue of Rs 42.7 crore in Q3-17 as compared to Rs 40.6 crore in the corresponding quarter of the previous year (Q3-16). Average advertisement minutes sold per show per screen decreased to 3.88 minutes (Q3-16 – 4.36) minutes during Q3-17.
Theatrical and In-Cinema advertisement (consolidated excluding new businesses) revenues grew by 2.5 percent y-o-y to Rs 147.3 crore (Q3-16 – Rs 143.7 crore). Consolidated revenues improved by 2.5 percent y-o-y in Q3-17 to Rs 148.8 crore (Q3-16 – Rs 145.2 crore).
Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) had 2..7 percent year-over-year (y-o-y) decline in Earnings before interest depreciation and amortisation (EBIDTA, operating profit) for the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding year ago quarter. The company’s EBIDTA for Q3-17 was Rs 43.22 crore (34.6 percent of Total Income from Operations or TIO, margin), for Q3-16, it was Rs 44.42 crore (30.7 percent margin). EBIDTA including other income saw a 3.9 percent y-o-y fall in the current quarter to Rs 44.49 crore from Rs 46.30 crore
Company speak on demonetisation
“We believe that the decision to demonetise high denomination currency notes is a positive step to bolster the economy in the long run,” said UFO Moviez joint managing director Kapil Agarwal. “In the short-term, the media and entertainment sector is one of the most adversely impacted sectors. In this challenging environment, UFO demonstrated resilience and delivered growth in advertisement revenues. While demonetisation has slowed down growth in the second half of fiscal 2017 making it difficult to achieve our advertisement growth target, we are extremely confident of delivering on our long term growth plans.”
“This is a positive set of results, both operationally and financially given the difficult market conditions, highlighting the strength of our business model,” said UFO Movies founder and managing director Sanjay Gaikwad. “Advertisement revenues achieved mid-single digit growth despite extreme pressure across sectors and dented advertising spends. We believe that the impact is transitory and the early signs of recovery are already visible. Going forward, re-monetisation along with the implementation of GST are expected to drive overall economic growth and UFO is well positioned to benefit from higher advertising spending by the government, corporates and hyperlocal advertisers.”
Let us look at the other numbers reported by UFO Moviez
Total Expense in Q3-17 increased 5.7 percent y-o-y to Rs 126.48 crore from Rs 119.62 crore in Q3-16. Ad revenue share (expense) in Q3-17 increased 10.7 percent y-o-y to Rs 12.90 crore from Rs 11.65 crore in the corresponding quarter of the previous year. Visual Print sharing expense in Q3-17 declined 4 percent y-o-y to Rs 17.47 crore from Rs 18.19 crore in Q3-16.
The company’s expense towards purchase of digital cinema equipment and lamps in the current quarter declined 22.7 percent y-o-y to Rs 14.08 crore as compared to Rs 18.21 crore in Q3-16.
Note: The unit of currency in this report is the Indian rupee - Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
