PVR confident about ad revenue growth, posts 16% increase in September quarter

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The growth in advertising income for media firms is what investors should watch out for, say analysts. After all, the slowdown impact is hurting businesses and, in turn, impacting their ad spends.

But, multiplex operator PVR is confident about advertising revenue especially after seeing the growth of 16 percent in Q2FY20 increasing to Rs 94 crore, up from Rs 81 crore in Q2 in 2018.

PVR announced its September quarter results on October 17, and brokerage firms termed the company's performance remarkable given the prevailing economic slowdown.

Talking to Moneycontrol, Nitin Sood, CFO, PVR said, “B2C business has not been impacted at all but B2B business is under stress because in tough times even brands will cut down on spending. Luckily, we have been able to replace with new age advertisers who are continuing to advertise and find cinema as a very effective medium."

"What we have also seen is some of the brands have consolidated their ad spends with leaders as we are as they see more value. Plus, teams are doing long term partnership deal with clients and doing some innovative advertising opportunities outside the traditional on-screen media because of which we have been able to sustain the advertising revenue growth numbers,” he said.

So, all consumer product companies continue to advertise in cinemas. “Mobile phone companies are large spenders including some of the Chinese brands like Vivo, Oneplus. Traditional category like FMCG, apparel, financial services continue to spend,” he added.

Along with the growth in advertising revenue, the box office revenue for the quarter was up by 32 percent led by a 25 percent growth in admits. Plus, F&B (food and beverage) revenues were up by 38 percent.

“The key big uptake is the box office admissions have been strong. It has also been one of our highest revenue quarters as it is close to Rs 1,000 crore revenue (Rs 979 crore),” said Sood.

PVR did about 2.93 crore admissions during the September quarter.

“We are seeing people coming to cinema. There is no impact on what is happening in the rest of the sectors reflecting on our business. In addition, we have seen strong F&B spend. We have a 10-12 percent increase in average spend,” he added.

Talking about box office performance, Sood said, “If you see the trajectory over the last 18 months, I think box office is doing well. I attribute this with the shift in consumption of entertainment which is evolving. I think lot of people think that OTTs will create a threat to cinema, our belief is contradictory to that. We believe that people in India consume more entertainment on their television screens and personal devices and their appetite to consume more entertainment outside their homes will go up.”

PVR’s screen additions have also been strong as it achieved the milestone of 800 screens in August.  In FY20, the multiplex firm has added 42 new screens till now.

And, Sood said that PVR should open anywhere between 50 to 60 screens in the second half of 2019. “Screens are ready or in advanced stage of completion,” he added.

According to analysts, screen additions, strong box office numbers and bright opportunity to grow ad revenue will aid the revenue growth of the company.

“Q3 will be a very strong quarter. It started on a very big note with top three films doing well including War, Joker and SyeRaa. We are looking at a good year ahead,” said Sood.