UTV's verticals profitable in FY'11, movie dominates

UTV's verticals profitable in FY'11, movie dominates

UTV

MUMBAI: The movie business is still UTV Software Communications' leading vertical, but the television and gaming segments have supported the company's growth in FY'11.

UTV has achieved its movie revenue guidance for the fiscal, posting a turnover of Rs 4.54 billion. while all the verticals have turned operationally profitable.

For the full-fiscal, the company with varied interests in movie production, broadcasting and gaming has posted a a consolidated net profit (after minority interest) of Rs 1.35 billion, a 154.03 per cent jump from Rs 533.32 million a year ago.

UTV's operating revenue for the fiscal jumped 40 per cent to Rs 9.29 billion, from Rs 6.64 billion in the earlier year. Television business aided 38 per cent of the topline during the fiscal.

The company has consolidated the financials of UTV Communications (USA) LLC, IG Interactive Entertainment, UTV Global Broadcasting, UTV TV Content, UTV Games, First Future Agri & Developers, UTV New Media, Indiagames and the group's stepdown subsidiaries -Ignition Entertainment, True Games Interactive, Genx Entertainment, UTV Entertainment Television, UTV Tele-Talkies, RB Entertainment Ltd & Vikatan UTV Content and the JV Screenshot Television Limited.

Movie Segment:

Aided by films like Rajneeti, No One Killed Jessica, Saat Khoon Maaf, and Dhobi Ghat among others, the movie business revenue jumped 44 per cent to Rs 4.54 billion, from Rs 3.15 billion a year ago. Operating profit went up 60 per cent to Rs 1.53 billion, from Rs 951 million.

UTV was largely de-risked with a combination of pre-sales and committed revenues on account of music, home video, TV and ancillary revenues prior to the release of the movies.

Television Segment:

The television segment revenue jumped 43 per cent to Rs 3.56 billion, up from Rs 2.49 billion a year ago.

The company posted operating profit of Rs 309 million from the segment compared to an operating loss of Rs 2 million in the earlier year.

Games and Interactive division:

UTV’s gaming and new media business raked in Rs 1.2 billion, contributing to 13 per cent of UTV’s total revenue. The company had registered a revenue of Rs 1.07 billion from the segment in the previous fiscal.

The segment saw an operating profit of Rs 141 million, as against an operating loss of Rs 148 million in FY’10.

The segment comprises Ignition, Indiagames, True Games, web and mobile foray of the company.

As of 31 March 2011, UTV had a net debt of Rs 8.19 billion.

Shares of UTV jumped 4.01 per cent to close at Rs 654.55 on the BSE.