INOX records growth in footfalls, Hindi versions of RRR and KGF 2 drive admits in Q1

The overall business of Q1 FY23 was driven by the performance of KGF 2 which earned around Rs 896 crore at the Indian box office, Kamal Haasan-starrer Vikram that did a business of Rs 242 crore, Kartik Aaryan's Bhool Bhulaiyaa 2 (Rs 186 crore) and Doctor Strange in the Multiverse of Madness (Rs 127 crore), said Tandon.

However, the multiplex saw one percent dip in occupancy at 29 percent in the first quarter of current financial year versus 30 percent in Q1 FY20.

PVR, which recently also reported its Q1 FY23 results, recorded 2.5 crore footfalls as against 2.7 crore in Q1 FY20, a seven percent drop as compared to pre-COVID levels. Occupancy in PVR chains in Q1 FY23 was 33.6 percent versus 37.3 percent in Q1 FY20.

PVR had said that there is a large segment of audience who go to cinemas once or twice a year and this consumer has to come back for it to see growth in footfalls. According to the exhibitor, it will take few months in terms of full recovery in admits. The company said that it will take more films to bring more people back to cinemas, and expects strong recovery in footfalls in December when there is a big line-up of films.

While analysts tracking the cinema business note that higher average ticket price (ATP) at multiplexes is impacting footfalls, Tandon said that ATP has gradually gone up and will rise in line with inflation.

"In FY22, our ATP was Rs 217 which because of reopening of theatres and (release of) blockbuster movies went to Rs 229 in Q1 FY23. We have to find the price that ensure that footfalls don't suffer," he added.

INOX reported a 16 percent growth in ATP versus Rs 198 in Q1 FY20.

Along with footfalls and ATP, other segments including net box office revenue recorded growth with INOX reporting Rs 353 crore in the quarter went by, up from Rs 287 crore in Q1 FY20. Share of this segment increased from 58 percent in pre-COVID times to 60 percent currently.

The company also pointed out that the distributor share was in control in Q1 FY23 at 44 percent, versus 43.9 percent in Q1 FY20.

The revenue-sharing model, under which some portion of a film’s box office collections goes to those distributing the film and the rest to the exhibitor, underwent a change due to the COVID-19 impact. Producers had asked for a higher revenue share at 60 percent in the first week, 55 percent in the second week and 50 percent in the third and fourth weeks. Pre-COVID, the revenue sharing was around 50 percent in the first week, 42 percent in the second week and 37 percent in the third week.

Tandon said that after two years of turmoil and toughest professional challenges due to coronavirus outbreak which led to shutting down of theatres for many months, the company has seen strongest recovery in Q1 FY23.