UTV Software has reported a sharp deterioration of its bottom-line for the quarter ended September 30 largely because its television business unit swung into a segment loss, though profitability of games & interactive business as well as movies segment also saw pressure on margins.
Disney controlled entertainment firm recorded net loss of Rs 28.85 crore for the second quarter compared to consolidated net profit of Rs 40.18 crore in the same quarter last year. This was largely due to television business moving into loss of Rs 21.33 crore against profit of Rs 4.92 crore in the year ago period.
Segment profit from games & interactive business shrunk 6.2 per cent over Q2 FY'11 to Rs 4.92 crore while movies business saw profit decline over two thirds to Rs 13.92 crore over the corresponding period last year.
UTV Software scrip closed at Rs 951.95 a share, down 0.1 per cent at BSE in a weak Mumbai market on Friday. Early this year, Disney had initiated a process to delist the firm from Indian stock exchanges.
The company's television segment comprises television content, airtime sales, dubbing services and the television channel broadcast business. Movies segment comprises the film production, distribution and syndication business. Games and Interactive segment comprise the online, consol, mobile gaming business and the web & mobile business.
The company's overall revenue was pretty much flat at Rs 240 crore compared to Rs 239.89 crore during the quarter ended September 30, 2010. This was primarily due to lower revenues from movies unit which crumbled from Rs 120.69 crore in Q2 FY'11 to Rs 68.33 crore last quarter.
This negated the positive rub-off from 49.7 per cent rise in revenues from games & interactive business for the quarter. Revenues from the television unit also rose 34 per cent to Rs 109.32 crore over the year ago period.
UTV games business includes India's largest digital gaming firm Indiagames. Two months ago UTV acquired a large stake in its subsidiary from its founder and chief executive Vishal Gondal.
Sequentially, UTV Software revenues rose around 20 per cent over the quarter ended June 30, 2011 while net loss shot up sharply compared to Rs 3 crore loss in Q1 FY'12.
The consolidated results include the subsidiaries: UTV Communications (USA) LLC, IG Interactive Entertainment Ltd, UTV Global Broadcasting Ltd, UTV TV Content Ltd., UTV Games Ltd, First Future Agri & Developers Ltd, UTV New Media Ltd, Indiagames Limited, Screenshot Television Limited and the group´s step-down subsidiaries -Ignition Entertainment Ltd., True Games Interactive, Genx Entertainment Ltd, UTV Entertainment Television Ltd, UTV Tele-Talkies Ltd, RB Entertainment Ltd. and Vikatan UTV Content Limited.
The firm has also disclosed that during the quarter (July-September 2011), UTV Games Ltd has acquired remaining 5 per cent stake in True Games Interactive thereby making it a wholly owned subsidiary. It did not say for how much was the stake purchased.