The company has registered 46 percent fall in its Q2 net profit at Rs 10.2 crore against Rs 19 crore in the same quarter last year.
Shares of UFO Moviez India declined 4 percent intraday Friday on the back of weak September quarter numbers.
The company has registered 46 percent fall in its Q2 net profit at Rs 10.2 crore against Rs 19 crore in the same quarter last year.
Revenue was down 13 percent at Rs 139 crore versus Rs 160 crore.
The operating profit (EBITDA) was down 33 percent at Rs 37 crore and margins was down 810 bps at 26.6 percent.
The company has reported weak results as advertisement revenues and print fees take a hit, while government spend on the advertisements has also been reduced.
The company's 79 percent of revenues comes from tier II and Tier III cities. The average advertisement minutes fell 31 percent to 3.1 minutes in this quarter.
During the quarter the company has entered into a scheme of arrangement and amalgamation with Qube Cinema Technologies.
Sanjay Gaikwad, Founder and Managing Director of UFO Moviez said, "Q2FY18 was one of our toughest quarters, advertisement revenues 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 few months,” he added.
At 09:42 hrs UFO Moviez India was quoting at Rs 470.90, down Rs 15.35, or 3.16 percent on the BSE.
The share touched its 52-week high Rs 500 and 52-week low Rs 316 on 30 November, 2017 and 11 August, 2017, respectively.
Currently, it is trading 5.82 percent below its 52-week high and 49.02 percent above its 52-week low.
The share gained 32 percent in the last 3 months.
Posted by Rakesh Patil
