?Media cos must focus on end customers to beat the slump?

The third quarter results of media & entertainment (M&E) companies point to the fact some of them need to look at controlling costs, work towards good content, animation, sequels and merchandising, among other things, for earning better profits, say analysts.

Farokh Balsara, national sector leader (media and entertainment), Ernst & Young, told FE that any company that is largely dependent on advertising revenue will be adversely impacted.

?The M&E industry will continue to do well in areas which are subscription-based or are dependent on end consumers for revenue,? he said.

He also noted that resource optimisation, intelligent investments and outsourcing could help M&E companies cut costs in a much better way.

Meanwhile, analysts feel that the Indian film industry is insulated from the downturn. Navin Shah, chief executive officer, P9 Integrated, a 360-degree film marketing company (a division of Percept Ltd), said, ?Q3 has been good for production houses, with films like Golmaal Returns, Dostana, Ghajini, Rab Ne? providing good returns.?

He noted that however, production houses are now more cost-conscious and are opting for better techniques for marketing films.

UTV Software Communications reported a net profit growth of 29% at Rs 29.9 crore for the quarter ended December 31, 2008 as compared to Rs 23.1 crore during the corresponding quarter last year.

The revenue of the company grew 30% at Rs 134.88 crore, as compared to Rs 123.18 crore in the same quarter of the previous year.

PVR Ltd reported revenue of Rs 76.6 crore for the quarter ended December 31, 2008, as compared to Rs 65.63 crore during the corresponding quarter of the previous financial year.

The profit after tax of the company stood at Rs 4.68 crore, as compared to Rs 6.11 crore in the same quarter of the previous year.

Adlabs reported a net loss of Rs 26.76 crore for the quarter ended December 31, 2008, against Rs 22.69 crore in the corresponding quarter of the previous financial year. The total income rose to Rs 216.62 crore, as compared to Rs 101.96 crore in the year-ago period.