Movies
Demonetisation, decline in govt ads impact UFO Q2 numbers
BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform UFO Moviez Ltd (UFO) reported a 12.8 percent year-on-year (y-o-y) decline in consolidated operating revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18) as compared with the corresponding year ago quarter. The company’s consolidated operating revenue was Rs 1,388.8 million for the quarter as against Rs 1,591.8 million for Q2 FY 2016-17. Advertisement revenue stood at Rs 372 million (Rs 517 million in Q2 FY 2016-17). Average advertisement minutes sold per show per screen stood at 3.52 minutes during Q2 FY 2017-18 (5.15 minutes in Q2 FY 2016-17).
The company’s consolidated net profit after tax declined by 47.8 percent y-o-y during the quarter under review to Rs 102 million from Rs 195.3 million. Consolidated operating profit excluding other income (EBIDTA) for Q2 FY 2017-18 fell by 31.8 percent y-o-y to Rs 374.7 million (26.1 percent margin) from Rs 549.7 million (34.5 percent margin).
“The last twelve months have been extremely challenging for the entire industry on account of one-off events such as demonetisation and implementation of GST, especially for the media sector, which was most severely impacted,” said UFO’s founder and managing director Sanjay Gaikwad. “Q2 FY 2017-18 was one of our toughest quarters. Advertisement revenue declined sharply on a high base of last year combined with slowdown in government advertisement spends. Nevertheless, we continue to remain extremely positive about the long-term growth prospects of the advertising business. We are hopeful that demand will pick up in a few months. The temporary slowdown has failed to deter us and we remain focused on achieving our long-term strategic goals by entering into a scheme of arrangement and amalgamation with Qube Cinema Technologies Pvt Ltd. We believe that this consolidation will further strengthen our position to capitalise on growth opportunities as the economy revives and gains steam.”
Total expenses in Q2 FY 2017-18 reduced by 2.7 percent y-o-y to Rs 1,014.1 million from Rs 1,042.1 million. Ad revenue share (expense) increased by 9.8 percent y-o-y to Rs 155.5 million from Rs 141.6 million. Visual print fees sharing expense decreased by 24.8 percent y-o-y to Rs 153.2 million from Rs 203.6 million. Other expenses increased by 0.9 percent y-o-y to Rs 212 million from Rs 201.2 million.
The company’s expense towards purchase of digital cinema equipment and lamps in the current quarter reduced by 1.8 percent y-o-y to Rs 159.5 million as compared with Rs 162.4 million. Employees’ benefits expense during the quarter under review dipped by 2.6 percent y-o-y to Rs 194.7 million from Rs 199.9 million. Other operating direct costs rose by 8.7 percent y-o-y during the quarter under review to Rs 140.4 million from Rs 129.2 million.
Hindi
Rajesh Ramaswamy exits The Script Room to focus on filmmaking journey
Ad filmmaker steps away from own venture to pursue direction and storytelling
MUMBAI: In a move that has caught the attention of the advertising and creative community, Rajesh Ramaswamy has announced his exit from The Script Room, the company he co-founded, marking the end of a seven-year stint at the helm.
The decision, which came into effect earlier this month, signals a shift in focus for Ramaswamy, who is now looking to immerse himself fully in filmmaking and direction as an independent creative.
Known for blending sharp advertising insight with storytelling craft, Ramaswamy has been instrumental in shaping The Script Room into a creative hub that delivered campaigns, branded content, and original storytelling formats. Over the years, the company collaborated with agencies, directors, and a wide network of writers, while also experimenting with formats such as short films and web series.
Sharing his thoughts on the transition, Ramaswamy indicated that the move is driven by a desire to focus and explore stories he has been developing over time. While he acknowledged the unconventional nature of stepping away from one’s own venture, he also framed it as a necessary leap toward clarity and creative pursuit.
Importantly, The Script Room will continue its operations with its current team and leadership, with Ramaswamy expressing confidence in the group that helped build the company’s identity. The studio, he noted, remains well-positioned to evolve further with fresh talent and ideas.
His exit also reflects a wider industry trend, where experienced advertising professionals are increasingly transitioning into independent filmmaking, tapping into the growing opportunities across digital and long-form content platforms.
As Ramaswamy steps into this new phase, the move underscores a familiar creative instinct, sometimes, the boldest ideas begin with a clean break.
