UTV Software net up on movie boost; gaming next driver

Media firm UTV Software Communications posted a 29% rise in net profit for October-December boosted by movie revenue, while it sees gaming driving growth in the next fiscal, a top official said.                                           

 

The firm posted a consolidated net profit of Rs378.2 million compared with Rs293.8 million, while net income jumped over 60% to Rs2.2 billion.                                            

While it continued to post losses in gaming content and new media businesses, earnings from movie nearly doubled to Rs4.3 billion.                                           

"Going forward, gaming vertical will see a higher growth. Next year, it will be 40% of our revenues," Ronnie Screwvala, chief executive officer, told Reuters over the telephone.                                           

Earlier this month, Reliance Big TV, the direct-to-home arm of Reliance Communications, signed a deal with UTV's gaming unit, Indiagames, to offer DTH gaming services in India.                                           

Screwvala expects investments in its gaming business to start bearing fruit from December 2010, as it gears up to release 3 new games, he added.                                           

"Our studio in Japan, London and US are creating very high-end games for the console market. So all of those 3 (games) will be released December onwards. So, that's really where the large revenues will come from."                                           
 

The firm also plans to release up to 12 movies in FY11 including Katrina Kaif-starrer 'Rajniti' and Sanjay Leela Bhansali's 'Guzarish', he said.                                            

Shares in the firm ended up 2.4% at Rs498.85 in the Mumbai market.