Contribution of regional content fell from 34 percent to 23 percent year-on-year on account of poor performance of Tamil and Telugu content.
The film exhibition business continues to show strong growth in business with one of the top multiplex players PVR posting strong results during the December quarter.
PVR in the third quarter FY20 recorded consolidated revenues at Rs 924 crore as compared to Rs 857 crore during the corresponding period in 2018, witnessing a growth of eight percent.
However, the revenue has dropped from Q2FY20 which so far has turned out to the best quarter for PVR during the financial year FY19-20 with revenues at Rs 979 crore.
Talking to Moneycontrol, Nitin Sood, CFO - PVR, said that, while Q2 was clearly one of the best quarters with 2.93 lakh admissions, the company saw 2.58 lakh admissions in the third quarter. Lower admissions are the primary reason for the drop in revenues compared to Q2.
The box office performance growth was muted in the third quarter which is considered as the most lucrative period for the film business with more holidays and festivals falling during this time.
“The regional content did not do well. The southern film industry --- Tamil and Telugu did not do so well that was one of the reasons,” he said.
The contribution of regional content fell from 34 percent to 23 percent year-on-year (YoY) on account of poor performance of Tamil and Telugu content.
While the box office performance has been satisfactory with strong performance from Bollywood and Hollywood film industry, the performance of regional film industry, specifically Tamil and Telugu has been below par in the current quarter resulting in muted growth in our overall box office revenues, added Ajay Bijli, Chairman and Managing Director, PVR Ltd.
The box office revenues for the third quarter were up by six percent from Rs 425 crore to Rs 453 crore.
Top grosser in Q3FY19-20 was War with 26 lakh admits and Rs 52.56 crore net box office collection (NBOC), followed by Housefull 4 with 18 lakh admits and 34.39 crore NBOC, Bala with 14 lakh admits and 31.71 crore NBOC, Joker with 17 lakh admits and Rs 26.45 crore NBOC, and Good Newwz with 10 lakh admits and Rs 24.15 crore NBOC.
Despite lower admissions, PVR managed growth in both food and beverage and advertising revenue segments.
F&B revenues were up by 13 percent from Rs 217 crore to Rs 244 crore supported by robust growth in average F&B spend per person of 12 percent.
Advertising revenues grew from Rs 112 crore to Rs 122 crore, up by 8 percent.
“Environment is tough but because of the unique set of properties we have and the premium customer base we have we have been able to sustain our advertising revenues in this quarter. There is definitely pressure and we could have done much better in normal state of economy but we have been able to sustain growth in advertising revenues,” said Sood.
Sood is also confident about the fourth quarter. “Movie consumption is holding on; film supply is excellent for the next quarter and the coming financial year; January started on a strong note. Film biz is doing well and we are not seeing any pressure at all neither from consumers nor in consumption spending or cinema going behavior,” he added.The content line-up for the coming months includes films like Kangana Ranaut’s Panga, Varun Dhawan’s Street Dancer, Sara Ali Khan’s Love Aaj Kal, Ayushmann Khurrana’s Shubh Mangal Zyada Saavdhan. From the Hollywood stable there are films like Birds of Prey, Bad Boys For Life, Bloodshot, The Invisible Man, among others.
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