UFO Moviez Q3 net up 87.2% to Rs 27.4 cr
MUMBAI: UFO Moviez has posted an 87.2% increase in net profit to Rs 27.4 crore for the quarter ended 31st December 2019 as against Rs 14.6 crore in the corresponding quarter of the previous fiscal. EBITDA stood at Rs 36 crore compared to Rs 40.6 crore. Profit before tax (PBT) stood at Rs 17.9 crore from Rs 23 crore.
Consolidated revenue declined at Rs 142.6 crore from Rs 154.7 crore. Ad revenue stood at Rs 42.7 crore compared to Rs 62.6 crore. The average advertisement minutes sold per show per screen stood at 5.03 minutes compared to 5.81.
UFO Moviez is India’s largest in-cinema advertising platform with the power to impact almost 2.1 billion viewers annually through 3600+ screens under the PRIME and POPULAR channels across 1200+ cities & towns.
On 18th July 2019 the company and Valuable Digital Screens Private Limited (VDSPL), its wholly-owned subsidiary company, had filed a joint application in relation to the Scheme of Arrangement between VDSPL and the Company and their respective shareholders (“the Scheme”) with the National Company Law Tribunal (NCLT).
The NCLT, vide its order dated 21st November 2019 sanctioned the Scheme for demerger of Caravan division of VDSPL with the Company with effect from 1st April 2019 (the Appointed date).
The scheme became effective from 4th December 2019. Pursuant to the Scheme, the carrying amount of all the assets, liabilities, income and expenses pertaining to the Caravan division has been transferred to the Company and the Company has recognised deferred tax assets amounting to Rs 12.4 crore resulting in lower taxes during the quarter ended 31st December 2019.
“The new brand identity which we rolled out in December 2019 has received positive feedback from advertisers and it positions us strongly for the future. On the business front, the slowdown in the economy is posing challenges, resulting in weak revenues in both Corporate and Government advertisement segments,” said UFO Moviez Joint MD Kapil Agarwal.
“Despite short-term challenges, we are optimistic about the future and continue to focus on driving advertisement revenues. We are confident that our continued efforts will help in delivering sustainable growth and shareholder value.”