UTV profit surges 176%

MEDIA CORNER

Ronnie Screwvala-promoted media and entertainment company UTV Software Communications has posted a net profit of Rs 25.08 crore for the first quarter ended June 30, 2008, a 176 per cent rise from Rs 9.09 crore in the corresponding period last year.

The company said that it would invest $75 million in its gaming division. UTV’s total revenue during the quarter rose by 154.21 per cent to Rs 145.18 crore from Rs 57.11 crore during the first quarter of 2007.

The company will use $8 million to raise its stake in gaming company Ignition from 70 per cent to 95 per cent.

 

As much as $37 million will be used to develop three high-end console games and working capital of Ignition for its facilities in London, Florida and Tokyo. The remaining $30 million will be used to invest in acquiring majority stake in an overseas online gaming company.

“The due diligence is on as of now and will take at least three months. We intend to acquire the majority stake anything between 51 per cent to 80 per cent,” said Ronnie Screwvala, chairman and CEO, UTV Software Communications.

The company has recently formed a wholly owned subsidiary UTV New Media to foray in the new media segment, which includes content creation and distribution pipelines for the web and mobile.