We are pleased to share that UFO has delivered another year of steady performance. Wedelivered 11 % advertisement growth during the fiscal year 2019. Our cash flow generationcontinued to remain healthy and Capex intensity remained low. We also declared a 300%dividend for the year which included a one-time special dividend of 150% in view of theavailability of cash with the Company.
Looking forward we are confident of delivering sustained growth in the medium to longterm. The Indian economy is expected to remain the fastest growing major economy in theworld on the back of digitization globalization favourable demographics and reforms. TheGovernment through the past Union budgets has also been providing a consumption push whichwill result in higher demand. Consumer behavior and expenditure patterns will continue toshift and correspondingly result in increase in advertising spends. In this scenario webelieve that there will continue to be tremendous growth prospects in India.
UFO's in-cinema Advertisement platform will continue to benefit from these trends asIndia is expected to become the third largest consumer economy in the World by 2025. Wewill continue to focus on driving advertisement revenue growth driven by increasinginventory utilization and realizations. The measurement and research on cinemas which wasinstitutionalized will help in further deepening customer engagement. Advertisers prefercredible research that provides footfalls consumer data and profiles. Hence this datawill drive advertiser interest and enable brands to take better informed investmentdecisions.
On the Scheme of Arrangement and Amalgamation between UFO and Qube the petition forthe merger with Qube was dismissed by NCLT in January and subsequently we startedexploring alternate options to combine UFO and Qube. However on account of the currentmarket conditions and decline in our stock price the comparative value of Qube requires asimilar write down which is not in line with the expectations of the shareholders of Qube.Hence at this stage there is a standstill. However the Managements and Promoters of bothcompanies are convinced of the benefits of the unified operations and will continue theefforts to unify both Companies.
Finally on behalf of the Board of Directors we would like to take this opportunity toexpress sincere gratitude toall our stakeholders for their continued interestand faith inUFO. Many thanks toall our shareholders for their unconditional support. A specialappreciation to all our employees for their vigorous efforts and commitment that havehelped in making UFO a prominent Digital Cinema and In-Cinema advertising service providerin India. We look forward to continuing this journey and achieving bigger dreams togetherin the future.
|Warm Regards. || |
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|Sanjay Caikwad ||Kapil Agarwal |
|Founder and Managing Director ||Joint Managing Director |