Digital cinema distribution firm and ad platform UFO Moviez has posted a net profit of Rs 9.82 crore for the quarter ended 30th June 2016 (Q1-FY17), down by 25.9% year-on-year (YoY), from Rs 13.25 crore in the same quarter last year. The company had posed a net profit of Rs 17.74 crore in the preceding quarter, a decline of 44.6%
Revenues at the company increased 2.7% from Rs 130.5 crore to Rs 134 crore from the same period last year. On a sequential basis, revenues decreased 8.2% from Rs 146.1 crore.
In this quarter, the company’s advertising revenue grew 5% to Rs 12.09 crore from Rs 11.47 crore in the same quarter last year. The average number of advertisement minutes sold per show per screen also increased to 3.97 minutes from 3.81 minutes in the same quarter last year.
– Kapil Agarwal, Joint MD said that “Profitability was negatively impacted due to planned losses in Caravan Talkies Efforts to improve Caravan revenues have further intensified, which we believe should lead to cash break even in H2FY17.”
– He added, “recently, we also announced the merger between UFO and its wholly owned subsidiaries, which on completion would result in significant synergies, cost saving and operating efficiencies.
– Caravan Talkies will be nonoperational in Q2FY17 due to monsoons. The initiative operates 91 caravans in 91 districts across 6 states and generated revenues of Rs 1.24 crore.
– UFO says that it has created a pan-India, in-cinema advertising platform with long-term advertising rights to 3,670 screens, with an average weekly seating capacity of approximately 49 million viewers.
– As of this quarter, UFO has 4,997 digital screens in India, including 116 in Nepal, across 1,928 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.
It’s subsidiaries include:
– Scrabble Entertainment Limited, where UFO owns 91.32% in the company. Scrabble operates UFO’s digital cinema business in certain states in India and internationally. Scrabble also has 33.33% stake in Scrabble Digital Ltd, which owns digital labs in Mumbai, Chennai and Hyderabad, and Scrabble Digital JLT, which owns digital labs in Dubai, which provide movie encoding, processing and compressing services.
– DCI Solutions Worldwide, which operates the digital cinema business in the US and Mexico through associates.
– Southern Digital Screenz India Private Ltd, which rolled out the company’s UFO-M4 digital cinema solutions in the states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh.