UTV Software Communications reported Operating Revenues of Rs.676 crores for FY2008-09 a significant growth of 53% from Rs.442 crores a year ago.
The net income zoomed 30% to touch Rs.101 crores.The net income also included an extra income component of 68 crores by virtue of forex fluctuations.
Although the results for March quarter were somewhat disappointing with just 7% topline growth YoY and a decline of 51% in net income to Rs 13.2 crores, down from Rs 27 crores a year ago.The main primer for decline was the big releases like RACE and Jodhaa akbar in the previous year.
The segmented revenue contribution for FY2008-09 are as follows:
UTV has also said that it is no longer interested in selling outright satellite rights for movies but would like to monetise the rights by selling it on yearly basis.This puts in at a better position by doubling the amount it currently earns although it might put pressure on bottom line in the short time .
UTV also remains bullish on Mobile gaming and believes that it will contribute $150-200 million in revenue to the topline within the next 18-24 months. Its subsidiary India Games has captured close to 60% of the market share in India and has grown 120% in 2008-09.It is also projecting 50% growth YoY for Indiatimes for quite some years.
In Online Gaming, UTV’s investment into True Games, has progressed well and by Q2 of 2009-10 they would be launching their own MMORPG Platform in the USA and Turkey .
UTV’s strategy for broadcasting segment remains to be:
- Specialty Channels with low cost models.
- Channels that are in a “Pay” & “Subscriber” model will always be part of theier Bouquet.
- To attend profitability on channels in 24-30 months and not have a 5-7 year horizon of Investment.
UTV has spent close to 240 crores into 4 Broadcasting Channels and their channel BINDASS MOVIES is the No.1 Hollywood Channel in India within a span of one year .
UTV has invested in lot of long term potential businesses which continue to bleed its bottomline in near term but may accrue significant income in long term.
