MAM
Q2-17: UFO Moviez ad revenue up 50 per cent
BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) reported a 50.4 per cent year-over-year (y-o-y) growth in advertising revenue for the quarter ended 30 September 2016 (Q2-17, current quarter). The company reported advertising revenue of Rs 51.7 crore in Q2-17 as compared to Rs 34.4 crore in the corresponding quarter of the previous year (Q2-16). Average advertisement minutes sold per show per screen increased to 5.15 (Q2-16 – 3.85) minutes during Q2-17.
Theatrical and In-Cinema advertisement (consolidated excluding new businesses) revenues grew by 6.9 per cent y-o-y to Rs 159.6 crore (Q2-16 – Rs 149.3 crore). Consolidated revenues improved by 7.4 per cent y-o-y in Q2-17 to Rs 159.21 crore (Q2-16 – Rs 148.25 crore).
Let us look at the other numbers reported by UFO Moviez
Total Expense in Q2-17 increased 1.8 per cent y-o-y to Rs 125.49 crore from Rs 123.22 crore in Q2-16. Ad revenue share (expense) in Q2-17 increased 25.3 per cent y-o-y to Rs 14.15 crore from Rs 11.29 crore in the corresponding quarter of the previous year. Visual Print sharing expense in Q2-17 increased 2.6 per cent y-o-y to Rs 20.51 crore from Rs 19.99 crore in Q2-16.
The company’s expense towards purchase of digital cinema equipment and lamps in the current quarter declined 33.8 per cent y-o-y to Rs 16.25 crore as compared to Rs 24.55 crore in Q2-16.
EBIDTA in the current quarter declined 20.3 per cent y-o-y to Rs 55.6 crore from Rs 46.3 crore in Q2-16. Profit after tax (PAT) in Q2-17 grew 23.1 per cent y-o-y to Rs 20.3 crore from Rs 16.5 crore in the corresponding year ago quarter.
Company speak
We are pleased to report record quarterly Advertisement revenues of 517 million,” said UFO Moviez joint managing director Kapil Agarwal. “Successful execution of our strategy has resulted in improvement in advertisement inventory utilization to 5.15 minutes per screen per show during the quarter. Theatrical business also performed quiet well on the back of increase in number of movies. The benefits from operating leverage were clearly visible which augmented the overall profitability profile of the Company.”
“Looking ahead, we expect continued momentum in advertisement revenues on the back of a robust film slate,” said UFO Movies founder and managing director Sanjay Gaikwad. “Our focus on expanding and strengthening client relationships in both Enterprise and Government verticals are yielding results. The hyperlocal advertising initiative UFO Framez is also witnessing steady improvement, which we believe is a healthy sign. The outlook looks quiet robust and we are well underway in meeting our 30% full year advertisement growth target.”
Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
