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- Q3FY16 Core revenues up 15.8%, EBITDA grows 8.7% and PAT higher by 24.2%
- Q3FY16 Consolidated revenues up 17.0%, EBITDA grows 2.5% and PAT higher by 1.1%
- UFO Moviez launches UFO Framez - Retail Advertising in Cinemas
UFO Moviez India Limited, India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens, today, announced its financial results for the quarter and nine months ended December 31, 2015.
The Core Business, comprising of the theatrical and in-cinema advertising reported healthy quarterly performance. Core Business revenues improved by 15.8% to Rs. 1,437 (Q3FY15 - Rs 1,242) million. EBITDA grew 8.7% to Rs 476 (Q3FY15 - Rs 438) million, PBT increased by 33.5% to Rs 274 (Q3FY15 - Rs 205) million and PAT was higher 24.2% to Rs 197 (Q3FY15 - Rs 159) million.
Consolidated revenues improved by 17.0% to Rs 1,452 (Q3FY15 - Rs 1,242) million. EBITDA grew 2.5% to Rs 449 (Q3FY15 - Rs 438) million. PBT increased by 15.7% to Rs 238 (Q3FY15 - Rs 205) million. PAT grew 1.1% to Rs 160 (Q3FY15 - Rs159) million.
Advertisement revenue grew 14.8% to Rs 406 (Q3FY15 - Rs 353) million. Average advertisement minutes sold per show per screen increased to 4.36 (Q3FY15 - 3.97) minutes during the quarter.
Announcement of soft launch of UFO Framez - Retail Advertising in Cinemas
UFO Framez will be an extension to the existing UFO Moviez in-cinema advertising. It will enable local businesses to reach out to their audience more effectively and economically. Retail advertisers will be able to create, personalize and launch campaigns on local movie screens.
UFO Framez website will be a one-stop cloud-based advertising technology platform that will enable Direct Sales Associates (DSA’s) to setup an advertising campaign instantly and personalize it with the user-friendly interface guiding at every step and is designed to meet all the essential demands of advertisers such as screen inventory management and campaign management.
*Core Business excludes VDSPL (Caravan Talkies and Club Cinema)
“In the third quarter of fiscal 2016, UFO continued to deliver healthy growth in core business revenues and profits,” said Sanjay Gaikwad, Founder and Managing Director. “Theatrical revenues sustained healthy momentum led by rate hike in H1FY16 and wider movie releases during the festival season. In-cinema advertising continued to deliver healthy performance, driven by volume-led sales growth. We launched UFO Framez today by opening registration for DSA’s across India. The excitement for UFO Framez is incredible and we believe that in-cinema advertising will get impetus from the retail advertisement opportunity.”
“We made substantial progress during the quarter operationally as well as strategically,” said Kapil Agarwal, Joint Managing Director. “Our focus on leveraging on our existing platform continued to deliver positive results. Simultaneously, we continued to expand our synergistic business Caravan Talkies. We added 67 new vans during the period, expanding our network through 91 districts. This business is expected to cash breakeven during the second half of fiscal 2017. Overall, we aim to build momentum in both core and new businesses and are excited about the future growth prospects of UFO Moviez.”
UFO Moviez India Limited (BSE Code: 539141; NSE Code: UFO) is India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens. UFO operates India’s largest satellite-based, digital cinema distribution network using its UFO-M4 platform, as well as India’s largest D-Cinema network. As on December 31, 2015, UFO’s global network, along with subsidiaries and associates, spans 6,636 screens worldwide, including 4,984 screens across India and 1,652 screens across the Middle East, Israel, Mexico and the USA.
UFO’s digitization and delivery model has been a key driver of extensive digitization of Indian cinemas and has enabled wide-spread, same day release of movies across India. UFO adds value to all stakeholders in the movie value chain, spanning movie producers, distributors, exhibitors and the cinema-going audience. UFO provides value to movie producers and distributors by reducing distribution costs, providing reach to a wide network, providing a faster method of delivery of content and reducing piracy through encryption and other security measures. We provide value to movie exhibitors throughout India by providing access to first day release of movies on our digital platform. Audiences benefit from faster access to new movie releases and a consistently high quality viewing experience.
UFO has created a pan India, high impact in-cinema advertising platform with generally long-term advertising rights to 3,726 screens, with an aggregate seating capacity of approximately 1.78 million viewers and a reach of 1,898 locations across India, as on December 31, 2015. UFO’s in-cinema advertising platform enables advertisers to reach a targeted, captive audience with high flexibility and control over the advertising process. UFO’s in-cinema advertising platform also allows small exhibitors who otherwise are not able to effectively monetise their advertising inventory due to their limited scale and reach to receive a greater share of advertisement revenue than they are able to using traditional advertising methods.
This document, except for the historical information, may contain forward looking statements indicating future performance or results, financial or otherwise. These forward looking statements are based on certain expectations, assumptions, anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market, ability to maintain and manage key customer relationship and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments, political instability and new or changed priorities of the trade. The Company, therefore, cannot guarantee that the forward looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward looking statements as may be required from time to time on the basis of subsequent developments and events.