UTV Software Q3 net up 6 pct

8220;Gaming is critical for them for the future,our whole recommendation for the stock is based on gaming,8221; an analyst,who did not wish to be named,said.

8220;The monetization in gaming has not happened so far and once it happens it will drive the stock higher,8221; the analyst,who rates the stock 8220;neutral,8221; said.

UTV Software,which operates its gaming segment via units Ignition,True Games and Indiagames,has been aggressively growing its gaming segment over the past two years.

However,profitability from the company8217;s movies segment dropped 37 per cent.

8220;Average margins from the movies segment would be 35 per cent to 40 per cent,but this time they have come down to 25 per cent,8221; the analyst said. 8220;Movies like 8216;Guzaarish,8217; 8216;Tees Maar Khan8217; did not do as well as expected.8221;

The analyst expects a similar performance in the fourth quarter,driven by gaming and movies,on the back of recent releases such as 8216;No One Killed Jessica,8217; and 8216;Dhobi Ghat.8217;

Earlier in the day,UTV Software posted a consolidated December-quarter net profit of 399.8 million rupees,compared with Rs 378.2 million a year ago.

Shares of the Mumbai-based company,which the market values at 21.79 billion rupees,rose as much as 2.8 per cent to Rs 537.95 in morning trade. At 12.28 p.m.,they were trading up 1.75 per cent at Rs 532.50 in a weak Mumbai market.