Ronnie Screwvala promoted media and entertainment company UTV Software Communications has posted a net profit of Rs 25.08 crore for the first quarter ended June 30, 2008, 176 per cent up from Rs 9.09 crore in the corresponding period last year. The company has also announced that it will invest $75 million in its gaming division.
UTV’s total revenue during the quarter rose by 154.21 per cent to Rs 145.18 crore from Rs 57.11 crore recorded during the first quarter of 2007.
Of the $75 million, $8 million will be used to up UTV’s stake in gaming company Ignition from 70 per cent to 95 per cent, $37 million will be used to develop three high end console games and as working capital of Ignition for its facilities in London, Florida and Tokyo. The remaining $30 million will be used to invest in acquiring majority stake in an overseas online gaming company and in a mobile games aggregate in the US. "The due diligence is on as of now and will take at least three months. We intend to acquire the majority stake anything between 51 per cent to 80 per cent," said Ronnie Screwvala, Chairman and CEO, UTV Software Communications.
"Growth in all our businesses and our focus on building partnerships have resulted is strong performance for this quarter. We believe that the expanded opportunity pipelines that we have created over the past few quarters in each of our verticals have started to deliver bringing us in the forefront of this dynamic Indian media and entertainment industry.
The outlook for this fiscal is very attractive, given the initiatives that we are implementing in all our five verticals i.e. Television, Movies, Interactive, Broadcasting and New Media. In addition, with the strategic relationship with Disney we have delivered on our commitment to maximize long-term shareholder value," said Screwvala.
The company has recently formed a wholly owned subsidiary UTV New Media Limited to foray in the new media segment which includes content creation and distribution pipelines for the Web and Mobile. "This venture will not only drive the Group's requirement for New Media distribution but will be an independent vertical to drive independent business in this domain," added Screwvala.
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