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Rose Major 27-06-2010
utvIndian media group UTV’s founder Ronnie Screwvala is reportedly considering taking the television production and broadcasting units of the company to an initial public offering.
An IPO would raise funds for the future growth of the business, which UTV said is “no longer in investment mode”. A market update from the company said that “all further investments will be directed towards building library and catalogue of Hindi, Hollywood & World Movie titles for multiple years.”
UTV holds multiple year rights for approximately 1,000 movies.
The Broadcasting and Television Content units of UTV, currently separate, will be reported as one segment from the current quarter. UTV owns and operates four channels – youth channel Bindass, Hollywood channel UTV Action, UTV World Movies and UTV Movies.
Revenues for the four channels will double during the company’s current financial year (to end-March 2011), UTV forecasts. In the year to end-March 2010, the broadcasting segment announced revenues of Rs1.5 billion. And its TV content business, the company confidently predicts, will see a 60% increase in revenues from Rs1 billion.
Overall, said UTV, on a combined EBITDA bsis, broadcasting will remain negative for the first and second quarters but break even and become profitable during the third and fourth quarter.
UTV, which also has units covering movies, games and new media, forecasts consolidated revenue for 2010-11 to be around Rs12 billion, up 65%. The company said it did not intend “to pursue any dilution or fund raising at the parent listed entity”. That, however, would not rule out finding new investors for the rapidly-growing broadcasting and TV segments.
In its market update statement, UTV said: “Over the last 8 Quarters, we have been steadily investing and growing our businesses (a) Motion Pictures (b) Broadcasting and TV Content (c) Games Content & New Media. We have always maintained 2009-10 would be the culmination of our ‘investment and restructuring’ mode and each of our business verticals would mature in 2010-11. We are now pleased to report that we feel good and confident for the year ahead.”
utvIndian media group UTV’s founder Ronnie Screwvala is reportedly considering taking the television production and broadcasting units of the company to an initial public offering.
An IPO would raise funds for the future growth of the business, which UTV said is “no longer in investment mode”. A market update from the company said that “all further investments will be directed towards building library and catalogue of Hindi, Hollywood & World Movie titles for multiple years.”
UTV holds multiple year rights for approximately 1,000 movies.
The Broadcasting and Television Content units of UTV, currently separate, will be reported as one segment from the current quarter. UTV owns and operates four channels – youth channel Bindass, Hollywood channel UTV Action, UTV World Movies and UTV Movies.
Revenues for the four channels will double during the company’s current financial year (to end-March 2011), UTV forecasts. In the year to end-March 2010, the broadcasting segment announced revenues of Rs1.5 billion. And its TV content business, the company confidently predicts, will see a 60% increase in revenues from Rs1 billion.
Overall, said UTV, on a combined EBITDA bsis, broadcasting will remain negative for the first and second quarters but break even and become profitable during the third and fourth quarter.
UTV, which also has units covering movies, games and new media, forecasts consolidated revenue for 2010-11 to be around Rs12 billion, up 65%. The company said it did not intend “to pursue any dilution or fund raising at the parent listed entity”. That, however, would not rule out finding new investors for the rapidly-growing broadcasting and TV segments.
In its market update statement, UTV said: “Over the last 8 Quarters, we have been steadily investing and growing our businesses (a) Motion Pictures (b) Broadcasting and TV Content (c) Games Content & New Media. We have always maintained 2009-10 would be the culmination of our ‘investment and restructuring’ mode and each of our business verticals would mature in 2010-11. We are now pleased to report that we feel good and confident for the year ahead.”