Letter to Shareholders
UFO's healthy operating and financial performance in fiscal 2018 is a reflection of thesuccessful execution of our strategy. We delivered volume driven advertisement growth of19% despite several headwinds during the year. Our profitability grew notwithstanding thepressure exerted by planned D-Cinema VPF revenue reduction. Our net operating cash flowscontinued to remain healthy. Thus the Board declared an enhanced dividend of 125% infiscal 2018 this marks the third consecutive annual dividend post listing.
Advertisement growth is the key for the long-term success of UFO. We continue to focuson driving advertisement growth through both inventory utilization and realizations toachieve our long term goal. Further UFO is also in the process of institutionalizingmeasurement and research to enable advertisers to take larger exposures in cinemaadvertising which will drive advertisement revenues more rapidly.
During the year your Company embarked upon a defining moment of consolidation whichwill have a positive impact on advertisement performance. On November 1 2017 the Companyannounced the Composite Scheme of Arrangement and Amalgamation between UFO and Qube CinemaTechnologies to increase the breadth and depth of UFO's offering. The closing of thistransaction is awaiting approvals from the regulatory authorities which is a few monthsaway. Post the merger all our stakeholders will benefit from our service offerings. UFO'sadvertising network of 3897 screens will expand to over 7000 screens.
Fiscal 2019 has commenced with a strong pipeline of movies and a positive outlook foradvertisement growth which will be further supplemented by the positive impact of themerger after it takes effect. The Company's targets are ambitious and we are steadilymoving towards achieving them.
In summary fiscal 2018 has been a year of strategic progress and we continue to focuson The Bigger Picture. Finally we would like to take this opportunity to thank ourshareholders for their unconditional support and would also like to thank all employeesfor their sincere efforts during the year.
|Warm Regards || |
|Sanjay Gaikwad ||Kapil Agarwal |
|Founder & Managing Director ||Joint Managing Director |