UTV to announce broadcasting partner

UTV Software Communications Ltd, the owner of an Indian film studio that has a production agreement with News Corp, may decide on a strategic or financial partner for its broadcasting venture by next week, founder Ronnie Screwvala said.

"We have presented all our options to the board and are reconvening next week," Screwvala said today in a telephone interview from Mumbai. He didn't say how much equity UTV, based in Mumbai, would offer the partner or how much it would raise.

The Finance Ministry yesterday said it approved UTV Software's plan to raise Rs 400 crore by the issue of foreign currency convertible bonds and the sale of shares in the company.

UTV said in July it aims to start eight channels in 18 months and sell a minority stake in the broadcasting unit. UTV, whose stakeholders include Walt Disney Co, will start two movie channels and a business news channel in the current quarter, Screwvala said.

UTV reported a profit of Rs 23 crore for the fiscal third-quarter ending December 31, 2007. That compares with a Rs 28.26 crore profit a year earlier, which included a one-time gain of Rs 26.3 crore. Sales almost tripled to Rs 123 crore.

"We expect sales to grow 1.5 times for this year," Screwvala said, and added that higher revenue was expected from the movie and gaming business.

UTV's "Rang De Basanti" (The Colors of Spring) was India's entry for the Academy Awards in 2006. UTV lost Rs 7.45, or 0.85 per cent, to close at Rs 869.70 on the BSE.