India's top multiplex chain PVR Inox went deeper into the red for the second straight quarter, with losses widening to Rs 178.7 crore in April-June from Rs 81.6 crore a year ago, as a no-show by big Bollywood films and fewer box office successes weighed.
The company had reported a loss of Rs 130 crore for the March quarter of FY24. Analysts had pegged the company's Q1 FY25 losses at Rs 174 crore.
Revenue from operations came in at Rs 1,190.7 crore, down 8.7 percent at Rs 1,304.9 crore from the previous year. Analysts expected an eight percent year-on-year (YoY) decline in revenue due to below-par performance of movies.
Analysts predicted the sluggishness to continue in Q1 FY25 due to lack of content. A few small surprises did bring cheer to the industry, but there were no big successes.
The start of the financial year 2025 has been no different from how things ended for the multiplex industry in the fourth quarter of FY24.
Q1 FY25 has been challenging for the multiplex industry, said an analyst who added that the total box office performance for April-May-June is likely to be weak due to the lack of blockbuster movies and major sporting events like the IPL (Indian Premier League) and the (2024 T20 cricket) World Cup competing for audience attention.
PVR Inox reported over 10 percent decline in footfalls to 3.04 crore in Q1 FY25 from 3.39 crore during the same period a year ago.
Average ticket price (ATP) fell 4.7 percent to Rs 235 in Q1 from Rs 246 in Q4 FY24 while spend per head (SPH) increased 3.1 percent YoY to Rs 134 from Rs 130.
General elections in April and May impacted the release calendar across all languages. Last year's writer's and actor's strikes affected Hollywood releases, the company said.
The multiplex chain in its investor presentation pointed out 13 percent drop in the number of releases in Q1 FY25 with 208 film releases across languages whereas 238 films had released in Q1 FY24.
The first quarter of FY25 also saw a sharp drop in blockbusters at the box office. Releases with more than Rs 100 crore gross box office collection (GBOC) fell to 3 from 7 in Q1 FY24.
During the quarter, the company opened 50 new screens and closed 14 underperforming screens, resulting in a net addition of 36 screens. Currently, PVR Inox's screen portfolio includes 1,754 screens in 361 cinemas across 113 cities in India and Sri Lanka.
The quarter began on a soft note, with April and May getting impacted due to the general elections, which were the second longest in India's history at 44 days, the company said adding that the elections prompted many producers to postpone film releases, resulting in a drop in the number of releases in the quarter as compared to the first quarter of last year.
June was the strongest month of the quarter, with both small and big-budget movies doing well. Munjya, a horror comedy flick, grossed more than Rs 110 crore. Chandu Champion, a biopic on India's first paralympic gold medalist, Murlikant Petkar, grossed Rs 75 crore.
On June 27, Kalki became the biggest movie of the year, contributing nearly 16 percent to the quarterly box office in just four days and grossing over Rs 1,000 crore globally to date.
"With Kalki's continued success and a promising lineup ahead across languages, Q2 has begun on a positive note. There are no significant events expected in the near future to disrupt the release schedule. Additionally, Hollywood is expected to bounce back, as the effects of the writer and actor strikes are beginning to diminish. We anticipate a significantly improved performance in the remaining three quarters of the current fiscal year,” said Ajay Bijli, Managing Director, PVR Inox Ltd.
In the upcoming months, several big Hindi movies are set for release, including Bad Newz, Stree 2, Vedaa, Auron Main Kahan Dum Tha, among others.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
