UTV Eyes Turnover Of Rs 5 Billion By ’08; Plans Acquisitions In Gaming And Animation

Indiantelevision.com: UTV Entertainment says it will reach a turnover of Rs 5 billion ($110 million) by 2008. This is when the company had sold its kids channel Hungama to Walt Disney. Currently, the group has a turnover of close to Rs 200 crore. The company CEO Ronnie Screwvala thinks the high growth will come mainly from movies and animation. So he is eyeing acquisitions in gaming and is also expecting higher sales in TV content.
UTV wantes to bet big on gaming and animation, besides post production and special effects. “We are eyeing acquisitions of domestic and overseas gaming companies. There is a model for international companies to look at India as an outsourcing model and an Indian story for going overseas. We are spending a lot of time evaluating the gaming business,” he says.
UTV will have about Rs 236 crore – from the sale of Hungama, fresh equity to UTV and Screwvala’s warrants – to fund its acquisition and other expansion activities. Besides, the company can leverage debt on a 1:1 debt-equity ratio and have a Rs 5 billion war chest. “In media, that offers lots of opportunities,” Screwvala says.
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