UFO Moviez India falls 7% on disappointing Q2 results
Revenue from operations declined 12.8% to Rs 139 crore from Rs 159 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, taxes, depreciation and amortization) margins down 780bps to 27.1% in Q2FY18 from 34.9% in Q2FY17.
The company said Q2FY18 was one of the 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. We believe that this consolidation will further strengthen our position to capitalize on growth opportunities as the economy revives and gains steam, Sanjay Gaikwad, Founder and Managing Director of UFO Moviez India said in press release.
UFO Moviez India is the India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens.
In past three weeks, the stock had outperformed the market by gaining 12% against 0.31% decline in the S&P BSE Sensex till Thursday.