Digital cinema distribution firm and ad platform UFO Moviez has reported a net profit of Rs 13.3 crore for the quarter ended 31st December 2016 (Q3-FY17), down 13.5% from Rs 15.4 crore in the same quarter last year. The company had reported a net profit of Rs 19.03 crore in the previous quarter.

Revenues at the company increased 2.5% from Rs 145.2 crore to Rs 148.8 crore from the same period last year. On a sequential basis, revenues decreased 6.7% from Rs 159.5 crore.

Advertising

In this quarter, the company’s advertising revenue grew 5.2% to Rs 42.7 crore from Rs 40.67 crore in the same quarter last year. However, the average number of advertisement minutes sold per show per screen decreased to 3.88 minutes from 4.36 minutes in the same quarter last year.

Other Highlights:

– Demonetization adversely impacted Caravan Talkies performance, with decline in consumer demand in rural areas leading to a withdrawal of advertisement contracts. The company had 44 caravans operations in November, significantly down from 91 caravans in 91 districts across 6 states during Q1-FY17.

– According to Sanjay Gaikwad, founder and MD of the company, “While demonetization has slowed down growth in the second half of fiscal 2017 making it difficult to achieve our advertisement growth target, we are extremely confident of delivering on our long term growth plans.”

– UFO currently has 5,052 in India (including 121 in Nepal) across 1,950 locations in the country. It claims to have 1,090 advertisers as of Q3FY17.

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.

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