UFO Moviez has launched a franchise brand called NOVA Cinemas, under its subsidiary Valuable Digital Screens (VDSPL), the company informed the BSE. Under the franchisee, the company plans to help local companies/entrepreneurs own and operate NOVA branded theatres in various parts of the country. The local investor will be responsible for the investment to set up the theatre as well as the day to day operations of theatre. VDSPL will be responsible for ensuring that the theatre is set up at a ‘competitive cost’ and will grant the license to use the brand NOVA Cinemas for a fee. It will also be responsible for providing theatrical technologies and sourcing of film content. With this initiative, UFO hopes to encourage theatres in non-metro regions in the country. Interestingly, the NOVA franchisees will be required to use UFO’s service offering, which will provide the company with a customer base for its digital cinema and advertising business. As of 31 December 2015, UFO had 4,984 digital screens in India, including 108 in Nepal, across 1,912 locations. UFO operates a satellite-based, digital cinema distribution network using its UFO-M4 platform. The company’s digitization and delivery model allows same day release of movies across India. Financials: The digital cinema distribution firm and ad platform UFO Moviez posted a net profit of Rs 15.39 crore for the quarter ended 31 December 2015 (Q3FY16) down by 6.1% year-on-year (YoY). The company had posted a net profit of Rs 16.52 crore in the preceding quarter, a decline of 7.3%.…
