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UTV Software net up 29 pct,beats forecast

UTV Software Communications posted a 29 per cent rise in quarterly net profit,led by gains in television content and gaming.

Written by Reuters | Mumbai |
January 27, 2009 2:22:02 pm

UTV Software Communications posted a 29 per cent rise in quarterly net profit,led by gains in television content and gaming,but its broadcast division continued to make losses,pressuring margins.

The company,with interests in broadcasting,television content,gaming and new media,reported net profit of 299 million rupees for the group,compared with 230.9 million rupees a year ago while net sales rose by a tenth to 1.35 billion.

According to a poll of analysts,UTV Software’s profit was expected to more than halve to 102 million rupees while net sales was projected at 1.48 billion rupees.

The gaming division grew by a fifth compared with the previous quarter,mainly on contribution from operations in India,a fast growing market for mobile gaming,UTV said.

Broadcasting made a loss of 113 million rupees while the television content division’s profit remained stable,it said in a press release.

The firm had said in November its loss in broadcasting for the third and fourth quarters of 2008/09 will not exceed 150 million rupees. It hopes to break even in fiscal first quarter of 2010/11,the company said on Tuesday.

UTV Software Communications in November also consolidated operations for four television channels – Bindass,Bindass Movies,UTV Movies and World Movies – by phasing out its Delhi operations.

Its motion pictures division had two successful small budget film releases – ‘Oye Lucky Lucky Oye’ and ‘Fashion’ – in the quarter.

“The growth as well as the success of our movies has not corresponded with the bottomline thus far,primarily because revenue exploitation has been back-ended and the cycle extended,” CEO Ronnie Screwvala said in the statement.

However,the company,which has invested 4.1 billion rupees into motion pictures,expects the benefits of a strong movie library,including Hollywood ones,to accrue in coming quarters.

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