Infosys posts strong revenue growth as markets recover

Infosys posted strong revenue growth in the second quarter as demand picked up in key markets including the U.S.

However, the Indian outsourcer’s net profit grew only 0.5 percent year on year as the company increased salaries for staff in India and elsewhere.

Profit was also affected by currency fluctuations, particularly the depreciation of the Australian dollar, and low staff utilization, said Ashok Vemuri, Infosys’ head of Americas, on Friday.

Revenue was close to $2 billion in the quarter, up by 13.6 percent year-on-year. Net profit for the quarter was $418 million.

Infosys has also maintained its earlier forecast for revenue growth of 6 to 10 percent for its fiscal year to March 31, 2014. The forecast does not, however, factor in an immigration bill in the U.S., which if passed in its current form could increase costs for outsourcers and lead to more work getting done offshore, Vemuri said.

The bill would among other things prevent companies with more than 15 percent of their U.S.-based staff on H-1B visas from placing those employees to work on-site for U.S. companies. It was passed by the U.S. Senate, but has encountered difficulties in the House of Representatives.

The strong revenue growth comes after a quarter when Infosys saw its revenue grow 9.4 percent, but profit decline by about 4 percent. Once the darling of investors, Infosys was seeing lackluster growth in revenue and profit compared to Indian competitors such as Tata Consultancy Services. This led Infosys’ co-founder and first CEO N. R. Narayana Murthy to return to the company as executive chairman on June 1.

In the U.S., Infosys benefited during the quarter from a recovery in the economy, and saw its business from the automotive sector grow strongly as car sales picked up, Vemuri said. Growth from financial services in the U.S. is still not as strong, while demand from Europe is still slow, he added.

The outlook is good for the company, as many large outsourcing deals come up for renewal in the industry, Vemuri said. The company’s “Infosys 3.0” strategy, which aims at a greater focus on reusable platforms and products, and high value services like consulting and systems integration, is paying off, he said. “In spite of an environment where discretionary spend continues to be challenged, we continue to grow our consulting and systems integration,” Vemuri added.

Infosys added 575 staff in the quarter, taking the total to 157,263 employees as on June 30. It also added 66 clients in the quarter.

Halle Berry's 'The Call' Makes Strong Debut on Home Entertainment Charts

Sony Pictures Home Entertainment nabbed two of the three No. 1 home video chart positions the week ending June 30 with The Call, a crime thriller starring Halle Berry as a 911 dispatcher rattled by a bad call who seeks redemption in trying to save the life of a kidnapped teenage girl.

The film earned $51.9 million in U.S. theaters and debuted at No. 1 on both the Nielsen VideoScan First Alert sales chart, which tracks overall discs sales, DVD and Blu-ray Disc combined, and Home Media Magazine’s rental chart.

But with DVD accounting for 74 percent of unit sales, it’s no surprise that The Call could only muster a No. 3 debut on Nielsen’s dedicated Blu-ray Disc sales chart, behind top-ranked Jack the Giant Slayer, from Warner Bros., and Oz the Great and Powerful, from Walt Disney. Both films occupied the same position on the Blu-ray Disc chart the previous week, when Jack debuted at No. 1 on both sales charts.

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On the latest First Alert chart, Jack slipped a notch to No. 2, bumping Oz the Great and Powerful to No. 3.

The No. 4 spot on First Alert (and the No. 5 spot on the Blu-ray Disc chart) went to Despicable Me, from Universal Studios, which rose from No. 12 the previous week based on soaring consumer interest in the Fourth of July weekend theatrical opening of Despicable Me 2.

Warner’s The Incredible Burt Wonderstone, about a comedy rivalry between old- and new-school Las Vegas magicians, debuted at No. 6 on First Alert and No. 4 on the Blu-ray Disc sales chart. The film was panned by critics and earned a meager $22.5 million in theaters despite starring roles by comic heavyweights Steve Carell, Steve Buscemi and Jim Carrey. The film’s video performance was undoubtedly helped by media coverage of the death of actor James Gandolfini, best known as television’s Tony Soprano, who plays a supporting role in the film.

The only other new release to make it into the top 10 on the overall disc sales chart was a Walmart exclusive called Illumination 7 Mini Movie Collection, a DVD-only collection of animated shorts based on three Universal Studios animated movies (Despicable Me, The Lorax and Hop) released to promote the theatrical release of Despicable Me 2.

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On Home Media Magazine’s video rental chart for the week, The Call was followed by a trio of third-weekers: Oz the Great and Powerful at No. 2, Lionsgate’s Snitch at No. 3, and Paramount’s Hansel & Gretel: Witch Hunters at No. 4.

The No. 5 spot went to the Universal Studios thriller Side Effects, which was No. 1 last week, when it came off its 28-day holdback from select rental outlets.

German Box Office in 2012: Strong Growth Across Nearly All Demographics (Study)

"Skyfall" was the number one film in Germany in 2012.

COLOGNE, Germany – Last year's record-breaking box office performance in Germany was even better than previously thought. A detailed analysis of 2012 released Tuesday by the German Federal Film Board showed growth across all but the youngest demographic (10-to-19), with graying audiences increasing dramatically.

Individuals ages 50-to-59 in Germany went to the movies 29 percent more often last year, while the 60-plus demo showed an 18 percent uptick. The total number of individual cinema-goers in Germany increased by 800,000 to just under 30 million, and the frequency of visits per person increased from 4.3 films per year to 4.4.

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The only negative was in the youngest demographic, 10-to-19, where movie-going decreased by 15 percent in 2012.

This is consistent with a long-term trend in Germany, which has seen a graying of the local cinema audience. The average age of a German moviegoer last year was 36.5, up from 34.5 in 2012, and over the past six years the strongest-growing demos have been movie fans 50 years or older (up 50 percent) and 60-plus (up 64 percent).

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Box Office Report: 'World War Z' Opens Strong in Australia, South Korea

Paramount's World War Z is scaring up strong business as it begins rolling out overseas, scoring stellar opening-day numbers in South Korea and Australia on Thursday.

The Brad Pitt zombie extravaganza took in $1.1 million in Australia, on par with Christopher Nolan's Inception, likewise an original tentpole. Inception posted a weekend opening gross of $6.7 million.

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In South Korea, World War Z grossed $1.2 million, just ahead of the $1.1 million earned a week ago by Superman tentpole Man of Steel on its way to an $8.6 million weekend. Inception's opening-day gross in South Korea was $941,000.

"These markets look great," remarked one top Paramount executive.

World War Z, directed by Marc Forster, begins rolling out in North America at 8 p.m. Thursday.

Paramount is predicting a domestic opening in the $40 million to $45 million range for World War Z, which is rated PG-13. But more bullish box-office observers with access to tracking believe the movie -- produced by and starring Pitt -- could open in the $50 million range, while holdover Man of Steel could earn anywhere from $50 million to $60 million in its second outing.

Disney and Pixar's Monsters University is widely expected to win the weekend with a $70 million-plus debut.

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Versus a big opening, Paramount and co-financing partner Skydance Productions are banking on World War Z to have a better-than-usual multiple, similar to other original tentpoles. Avatar debuted to $77 million in December 2009 on its way to cuming $760.5 million domestically, or 10 times its opening number. And in summer 2010, Christopher Nolan's Inception grossed $292.6 million, nearly five times its $62 million debut.

Paramount insiders point out that very few original event pics open to $50 million or more. And while Pitt may be one of the world's most recognizable stars, his biggest opening was the $50.3 million earned by Mr. and Mrs. Smith in summer 2005.

World War Z, based on Max Brooks' 2006 novel of the same name, is a sizable gamble for the studio, costing $190 million to produce after tax incentives. The budget was originally $150 million, but extensive reshoots bumped up the number (it was initially slotted to open in December 2010).

The apocalyptic horror pic is a passion project for Pitt, who produced the movie via his Paramount-based production company Plan B. In the film, he plays a retired U.N. employee who must return to work and stop a worldwide pandemic that is turning humans into zombies. The Killing's Mireille Enos stars as his wife.

World War Z, which has received generally positive reviews, is opening in a total of 26 foreign markets this weekend.

Twitter: @sajilpl