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To raise $75 mn through overseas listing in June: UTV

Published on Fri, Apr 27, 2007 at 12:45 | Source : Moneycontrol.com

Updated at Mon, Apr 30, 2007 at 10:42

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Ronnie Screwala, Chairman, UTV Software Communications

Excerpts from Markets Midday on CNBC-TV18 Watch the full show »

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UTV Software Communications has announced its FY07 results. The company's net profit was up at Rs 55.5 crore (Rs 555 million) from Rs 14.2 crore (Rs 142 million).

Its revenues were down at Rs 203 crore (Rs 2.03 billion) versus Rs 218.2 crore (Rs 2.18 billion).

Ronnie Screwvala, Chairman, UTV Software Communications credits the gains from the sale of Hungama stake, which boosted numbers.

UTV plans to raise USD 75 million from overseas listing, which will happen in June.

Their TV and movie business contributed 45% and 55% respectively. He expects the new media business to surge substantially in FY08 and revenues to grow 100%. He expects acqusitions to add Rs 100 cr in FY08.

Excerpts from CNBC-TV18's exclusive interview with Ronnie Screwvala:

Q: Could you walk us through what caused the dip in sales and the huge surge in profits?

A: Essentially in terms of sales, it is pretty much on a flat level with a minute dip and that is primarily because one of our two of our movies that we were looking in the last quarter, we have moved for some strategic reasons into the May quarter.

Outside of that, in terms of margins overall, we had some fair amount of efficiency in our movie production business and overall in our content business.

Another positive is really been the capital gains arising out of our sale of Hungama channel. So it is a combination of both, but it is a fair amount of surge in the content part also.

Q: Can you take us through the hiving off of your movie business, the valuation and the time of the listing?

A: The overseas listing that we are looking at, as far as the movies division only is concerned, we are looking at it in the month of June.

So our timeline is May-end to the middle of June essentially and we are looking at raising around USD 75 million for about 25% of this subsidiary and the balance 75% will be obviously owned by UTV.

Q: What are you going to do with the USD 79 million?

A: We are going to obviously increase our slate in movies firstly and secondly we have also had a large international slate. We have successfully released the Chris Rock and the Namesake movie and the M Night Shyamalan's movie, plus increase in our domestic slate here.

Q: IF you could take us through the division of revenues between TV, films and the allied services and the guidance for FY08?

A: Overall I would say that the division between television and movies in the overall revenue basis would be around 45 and 55 in proportion, so equal.

With the new media, to a certain extent, just starting to build in, because we have just consummated the acquisition of our two gaming companies - Indiagames and we have acquired Ignition. So those consolidations will start happening in this quarter.

Going forward into this year, we are looking overall at our movies division growth by about 100%.

The entire new media business will have a huge surge because in our two acquisitions itself, there would be another at least Rs 100 crore coming to the topline. By and large, we see an overall 100% growth in the topline in the coming year.