http://www.indiantelevision.com/headlines/y2k10/june/june210.php
UTV plans to list broadcasting biz Indiantelevision.com Team (24 June 2010 10:15 pm) MUMBAI: Founder-promoter Ronnie Screwvala is on the hunt for funds again. He believes that diluting further equity in UTV Software Communications (UTV) is not the best option. His clear preference at this stage is to list the broadcasting business separately, after combining it with the television content segment. The plan to combine all small screen businesses together for a public offer is timely. UTV's four television channels - UTV Movies (Hindi movie channel), UTV Bindass (youth entertainment channel), UTV Action (dubbed Hollywood channel) and UTV World Movies (world movie channel) - have crossed the investment stage. Fund requirement now will be directed towards building library and catalogue of Hindi, Hollywood and World Movie titles for multiple years. For getting scale, Screwvala has crafted the merger of the television content business with the broadcasting subsidiary. In FY'10, these two arms did a combined turnover of Rs 2.52 billion. UTV expects this to climb to Rs 3.80 billion by the end of this 12-month run. The problem is with the Ebitda, but UTV expects this to vastly improve over time. The broadcasting business, with a projected turnover of Rs 2.20 billion, is aiming at a turnaround during the last two quarters after posting losses for the first half of the fiscal. The TV content business, which includes content creation in six languages, air time sales and dubbing, hopes to shore up its revenues to Rs 1.60 billion (from Rs 1.01 billion) and operating profit to around Rs 160 million (from Rs 33.85 million). The board of UTV's broadcasting subsidiary will, thus, meet to evaluate the merger of the TV content business with itself. The combined entity will head for an IPO (initial public offer), raising capital to fund its future growth. "This will allow us to unlock value for this growing business and achieve market determined valuation benchmarks which we do not enjoy today," UTV said. Meanwhile, UTV Software Communications has shelved its plans to raise up to Rs 7.50 billion via any instrument, including a QIP (qualified institutional placement).. "We wish to clarify that we have not proceeded with this option as we do not see a match at current valuations and we do not believe any dilution at the listed entity is the best option for present or future shareholder’s value creation. We will keep tracking this but as of the present we do not envisage pursuing a dilution," UTV expained. ------------------------------------ -- INFORMATION OVERLOAD? Get all ZESTMedia mails sent out in a span of 24 hours in a single mail. Subscribe to the daily digest version by sending a blank mail to [email protected], OR, if you have a Yahoo! Id, change your settings at http://groups.yahoo.com/group/ZESTMedia/join/ PARTICIPATE Share media news, discuss journalism issues and network with media professionals across South Asia on this mailing list. Just write to [email protected] TELL FRIENDS TO SIGN UP If you got this mail as a forward, subscribe to ZESTMedia by sending a blank mail to [email protected] OR, if you have a Yahoo! ID, by visiting http://groups.yahoo.com/group/ZESTMedia/join/ Also have a look at our sister list, ZESTCaste: http://groups.yahoo.com/group/ZESTCaste/Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ZESTMedia/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/ZESTMedia/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
