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UTV Interactive Revenues At Rs. 12.86 Crores, EBITDA Loss; FDI Approval

The Interactive segment of BSE listed UTV Software Communications, which includes Gaming, Animation, Post Production and SFX, has clocked revenues of Rs. 12.86 crores for the quarter ending December 31st 2007, up from Rs. 5.42 crores for the same quarter last year. However, at the EBITDA level, the company made a loss of Rs. 80 lakhs, down from a profit of 1.6 crores for the same period last year. During the quarter, Interactive contributed around 10 percent to the operating revenues of UTV. For the nine months – UTV Interactive clocked revenues of Rs. 43.72 crores, up from 17.51 crores for the same period last year. At the EBITDA level, the company had a profit of Rs. 5 crores at the EBITDA level the nine months ending Dec 31st 2007, down from Rs. 5.4 crores for the same period last year.

It’s key to note that during the quarter, UTV Communications (UK) acquired 54.86 percent stake in Indiagames Ltd for US$ 9 million, and was allotted an additional 12.11 percent stake in the company as ESOPS for management shareholders. UTV CEO Ronnie Screwvala believes that the Interactive business is scalable, and the impact of the M&A will be seen in the next fiscal. UTV recently sold its interest in the Post Production & VFX business to Prime Focus Ltd, in order to focus on consumer focused businesses; they felt that the service oriented business was not viable at the existing scale of operations.

Also, Sify reports that the Foreign Investment Promotion Board (FIPB) has approved UTVs FDI plans, which will allow the company to raise Rs. 400 crores.

Release | Financials