PVR will cross 600 screens in the coming year, apart from DT Cinema, says Nitin Sood CFO of the company.
PVR is targeting 4-5 percent growth in ticket price, along with a double digit growth in its food and beverage business and ad revenue in FY17, says Nitin Sood, CFO of India's largest cinema exhibition company. Further, he believes overall footfall growth in FY17 will be around 10-15 percent.
The company's footfall growth stood at 7-8 percent and ad revenue growth at 22 percent year-on-year (Y-o-Y) for the quarter ended March, Sood tells CNBC-TV18.
In FY16, the multiplex chain added 52 screens and is planning addition of 65 more screens in the current fiscal, he said, adding that PVR will cross 600 screens during the year.
Below is the verbatim transcript of Nitin Sood\\'s interview with Sonia Shenoy & Anuj Singhal on CNBC-TV18.
Sonia: Could you just start by taking us through what has been the footfall growth this quarter and what could the sustainable growth be?
A: Overall this quarter we saw almost 26 percent footfall growth. It has been a great quarter because quarter four is traditionally a much smaller slower quarter for all of us. This year has been exceptionally good. On a full year basis this year we have almost achieved on a same store 10-11 percent footfall growth which has also been a great year to how the box office has panned out.
Anuj: What has been the average ticket price (ATP) for you?
A: Average ticket price growth during the quarter was almost 7 to 8 percent. Our average ticket pricing on a full year basis is now approximately Rs 185 for the entire circuit that we operate.
Sonia: How was the growth in the food and beverages (F&B) spends per head, has it gone up?
A: Our F&B spend per head is now almost Rs 73 which is roughly almost 40 percent of the ticket pricing spend.
Anuj: Also tell us about the ad revenue growth this quarter?
A: Ad revenues have also grown by almost 20-22 percent over the corresponding quarter four of last year. So, sum total if you look at Box office, food and beverages (F&B) and advertising revenue growth it has been in the range of 15-20 percent on a full year basis.
Anuj: Give us your outlook as far as screen additions are concerned for FY17?
A: We have added approximately 52 screens in the whole financial year and we are looking at adding about 65 odd screens in the current fiscal year apart from screens that we will get from the DT Cinema acquisition. We are hoping to cross the 600 screen number by the end of this fiscal year.
Anuj: Any inorganic growth plans, any acquisitions?
A: Not in the near term, I think the focus is really to build the business organically now and achieve the great traction that we have received. We are moving into nearer markets selling more to the existing consumers and focusing on improving the experience now for the guests. So, that is the near term focus for the company.
Sonia: What kind of footfall, ticket prices and revenue growth can one expect in FY17?
A: Overall, if you kind of look at the business we are coming on a back of a very strong year. So, same store footfall growth may be very marginal to about say 2 to 3 percent depending upon on how the year pans out. However, because of the new screen additions that we are making, I think overall footfall growth for the company will be in double digits. It will be in the range of 10 to 15 percent depending upon how the current trend pans out.
Our average ticket pricing growth will continue to grow with inflation, so could be in the range of 4 to 5 percent. Our F&B and advertising will both continue to grow in double digits, so fairly strong outlook for the year. If Box Office sustains, we should be kind of working towards improving the margins marginally over what we have done in the current fiscal year.