PVR has come out with its third quarter numbers. In an interview to CNBC-TV18, Nitin Sood, CFO of PVR discussed the company's Q3 performance.
Below is the verbatim transcript of the interview:
Q: Margins have improved on a year-on-year (YoY) basis. What led to this increase and what is the guidance for Q4 and FY19?
A: One of the big reasons for the margin improvement has been the strong growth in food and beverages (F&B) and advertising performance. On the box office front we were impacted during the quarter largely because of the fact that Padmaavat moved and the film shifted the next quarter. However, we have managed a healthy ticket price growth. So a sum total of all of that, I think a decent revenue growth and a tight control over cost has helped us to improve upon the operating margins for the quarter and overall margins are up by almost 150 bps during the quarter.
Q: You are pointing out that the average ticket price and footfalls have improved. So with bigger releases in Q4 to be lined up can we expect this number to increase?
A: We do not forecast ticket price growth quarter-on-quarter. Largely on annual basis our average ticket price growth will be in the range of 5-6 percent which is largely in line with inflation. So 5-6 percent is the kind of annual growth that we aim to achieve and we are hoping that Q4 will be a good quarter because a lot of big films have moved to Q4. January has had a decent start, even though we have had a little setback on some states not being able to play the film but the lineup is very good and February and March should be a good quarter. Therefore, we are hoping for a better Q4 than what we achieved last year.
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