UTV Software Communications has reported Interactive revenues of Rs. 95.57 crores for the financial year ending March 31st 2008 (FY08). For the year, the Interactive segment, comprising of Post Production, Animation and Gaming (Ignition Entertaiment and Indiagames) contributed 22 percent of revenue for the company. At the EBITDA level, the Interactive segment contributed Rs. 11.44 lakhs. UTV has projected that the Interactive segment will contribute 20 percent to revenues in 2009.
This was a significant quarter for UTVs Interactive business, with revenues of Rs. 51.8 crores, contributing 28 percent to the Q4 revenues. That’s more than all the other three quarters put together, so we’re trying to get an update on that. At the EBITDA level, the Interactive segment of UTV has a profit of Rs 6.4 lakhs, at a margin of 12 percent for the quarter. There is no further segment-wise breakup of Interactive; readers should bear in mind that UTV had sold their post-production and Visual FX business to Prime Focus last quarter, and will not be included in this segment in following quarters.
Interestingly, UTV CEO Ronnie Screwvala says in the earnings report that their gaming and animation business has little dependence on the Indian market…so I guess the contribution in terms of revenues from India isn’t particularly significant. As per the release, UTV software is expected to see “an inflow of approximately Rs. 940 crores from the Disney (NYSE: DIS) transaction and around Rs 39 crores as part payment against the Promoter Warrants. An inflow of balance consideration of Rs 360 crores against the Promoter warrants is expected within next 18 months.” Importantly, around Rs 130 crores will be invested in the Interactive businesses primarily for the development of new game IPs.
Update: UTV has informed us that the significant rise in Q4 numbers is because Indiagames’ financials were incorporated into UTVs balance sheet, and because Ignition Entertainment published 4-6 games in the quarter. Also, we can now calculate the overall gaming revenues from the balance sheet – we’re told that the standalone results in the balance sheet comprise of post production and animation numbers, while consolidated revenues include gaming. Therefore UTVs gaming revenues (from Indiagames and Ignition) for the year were Rs. 69.09 crores, and Rs. 44.59 crores for the quarter.