UTV Software Q1 consol net jumps on movie gains

MUMBAI, July 29 (Reuters) - Media company UTV Software Communications Ltd (UTVS.BO: Quote, Profile, Research) reported an almost threefold increase in net profit in the April-June quarter, led by gains in its movie business.

UTV Software on Tuesday posted a consolidated net profit of 251 million rupees during the quarter on total revenues of 1.45 billion rupees. A year ago, the company posted a net profit of 91 million rupees on a total revenue of 571 million rupees in Q1.

"The key one for this quarter is movies which definitely is a larger share," Chairman Ronnie Screwvala told Reuters.

Films brought in 931.6 million rupees in revenue and 223 million rupees in profit before interest and tax during the quarter.

The company's start-up new media business, including web and mobile content creation, brought in 26 million rupees of revenue and is expected to bring 6 percent of the company's revenue for the year, he said.

"Every year we always do one investment into a new space which is what we call horizon businesses till it becomes a mature business three years later," said Screwvala.

Movies will contribute about 40 percent of revenue, gaming 20 percent, broadcasting 14 percent, and television content another 20 percent, he added.

New media posted a loss of 6.4 million rupees before interest and tax and while gaming posted a loss of 35.8 million rupees before interest and tax during the quarter.

Although the broadcasting results were not including in the first quarter results, they will be included in the next nine months consolidated results of the company, he said.