If anyone can make head or tail out of it, please post it here. Looks like company is helping PE funds exist a private investment
There are total 10000 theatre screens in India, 4000 have UFO system for advertising and another 3400 has qube and remaining other players. So merger will give them wider coverage and pricing power for incimena advertising…
They will also help boost profits in future as growth in new screens is limited. I would say a good strategic decision by management.
Will have to check the price paid in detail to be clear about value creation for shareholders.
Does anyone understand the rationale for the preferential issue? Why does the company need to raise funds when it has a net cash position? They could easily fund the Qube transaction from the cash on their balance sheet.
UFO is buying shares worth Rs 117 crs from Qube investors & it has gross cash of more than 150 crs.
Have done some number crunching of the composite scheme and proposed preferential issue to promoters.
excel file attached
UFO Movies.xlsx (14.9 KB)
Disc: Invested since IPO and added further.
Nice work. From where you took projection about PAT and EBITDA? concall?
I feel that your work and the detailed maths is credible. The issue is not with the projections, its pretty easy to understand that the whole industry has a good upside potential and can be getting better and better as more innovation happens and overall cinemas become more mainstream after GST.
The issue is UFO’s strategy and path ahead. I believe that the management is competent and can deliver a good growth over the medium term and as long as the technology is not disrupted, grow.
The projected EBIDTA is just a guesstimate. I am awaiting earnings call and clarity from management about the incremental ebidta due to cost savings, pricing power, volume increase, etc.
the company would have a dominant position as far single screen theatres are considered
Disc: Invested since IPO and added further
Earnings Call Q3 FY18 Key highlights :-
- In line with PVR and Inox, Strong Ad revenue growth of ~16% in Q3FY18
- Growth driven by volume (17% y-o-y) and realization (4% y-o-y)
- New initiative “Caravan Talkies” (movie on wheels in rural areas) showed impressive revenue (167% y-o-y) growth for 9M FY18 and loss in narrowed down
- Revenue driven by higher realization per Van
- Operates 41 Vans in 12 states
- No of operating screens increased by 5% during Q3 FY18
- EBITDA marginally margin down due to expense related to Amalgamation
For other companies earnings call summaries - https://quotethemoat.wordpress.com/
Came across an interesting article on merger of only 2 big players in digital entertainment in India.
All south films producers decided to stop the screening of regional movies from march 2nd as a protest against the high chargers of digital service providers like UFO and QUBE.
Can you post the complete article as it’s asking to subscribe
Every merger in India shall be approved by competition commission of India (CCI). In this case, CCI may not approve the deal as both will have 90% market share approximately after the merger.
This could be reason for subdued stock price.
Any further info on this issue may please be shared.
Latest SHP shows Vallabh Bhansahli of enam has increased his stake this qtr from 3 lakhs to 3.6 lakhs
Has anyone received the dividend yet? The effective date was 01/08/2018
When did they declare the dividend?
In May, they announced