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Indiagames Ltd, (still) owned by UTV, has reported a profit of Rs 2.47 crore for the financial year ended 31st March 2011, on the back of a 37% increase in revenues, according to its annual report. The company reported revenues of Rs 54.51 crore (surpassing the target that it had been set), up from Rs 39.91 crore the previous fiscal, largely lead by growth in its mobile gaming business.

Note that the Profit After Tax  is almost equal to the Other Income.

According to schedules to the Profit and Loss account in its Annual report (see Page 36), the company earned Rs 37,95,14,574 as Product Revenue, Rs 9,70,50,447 as service revenue, Rs 3,82,12,303 as Sponsorship/Advertising revenue, and Rs 91,52,656 from ‘Sale of Goods as Master Service Provider’. Advertising, Publicity and Business Promotion is its single largest expense, at Rs 10,50,71,820. Indiagames has 191 employees in mobile, 16 in Games on Demand, and 24 others.

Domestic Mobile Business Drives Growth

In a statement, Indiagames said that growth was achieved through a focus on managed services business for Tata Docomo, Uninor and Idea Cellular and “large accounts like Airtel and Vodafone also grew contributing to about a 24% year on year growth in the India mobile busness”. It claims that the a games subscription pack launched across 6 telecom operators, had over 1 million subscribers by year end, and the “Tata Docomo Managed Services program resulted in more than 70% growth in the Tata account on a year on year basis”.

The company claims that T20fever and its avatars (Indiagames often releases tournament specific versions of its Cricket game/s) became one of the most successful Cricket titles on the iOS and Android; Bruce Lee was live on the iPad on the date of its launch, and was also embedded on the Sony Ericsson Xperia Play handset, on launch.

Indiagames warns that it will have to adapt from current business models of pay per download and subscriptions, to microtransactions and ‘freemium’ services, where a small percentage of users pay, and the rest have advertising supported content. It plans to restructure teams and focus to address these changes, and focus on microtransactions, social and ad-funded models.

Games on Demand: Proi

Games On Demand (GoD) is Indiagames’ subscription based broadband gaming initiative – an independent game rental/sales business in partnership with broadband ISPs. Indiagames says that its GoD business  grew to 80,000 paid subscribers from 30,000 paid subscribers in 2011, and became profitable, especially following a focus on BSNL broadband. Revenues were Rs 8.189 crore, compared with Rs 2.291 crore in FY10.

DTH Gaming & Ad-Funded

Indiagames’ DTH gaming segment crossed 30,000 subscribers in the first 3 months of launch, growing 1488% for the year, but obviously on a rather low base. The company believes that the medium is suited for a mix of paid and ad-funded approach, and it intends to push the ad-funded model on DTH, supported by subscription.

It has invested in recruiting a team to drive the cross platform ad funded games business, and it says that the “foundations have been laid last year and the teams restructured with a new ad sales head.” Indiagames’ Ad funded business grew 11% last year.

Interestingly, a part of Indiagames’ direct costs, is ‘Broadcasting Fee’ of Rs 800,000.

Rural?

The company, interestingly, states in its annual report that it intends to “Launch a rural initiative to drive gaming to the masses in the India with the end goal of making Games bigger than Movies”. How about games with instructions in Indic language, then?

Download: Indiagames’ FY11 Annual Report