Multiplex chain PVR managed to reduce losses in the second quarter despite nil revenues from the core movie exhibition business with the exception of one property in Colombo.
The company managed to get rent waivers from most landlords, PVR’s CFO Nitin Sood said in an interview to CNBC-TV18.
“The big focus for us right now as revenues have been nil is to really reduce our fixed cost and we have managed to do that,” he said.
“We have brought down our fixed cost down by almost 75-80 percent. One of the big success that we have also managed to achieve is also to speak to our landlord partners and we have been able to get rent waivers from most of our landlords for the period we have been shut,” he said.
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He said further cost reductions were not possible, but there was enough liquidity on the company’s balance sheet for now.
Sood said the next major milestone would be the opening up of screens in Maharashtra, which accounts for roughly 25 percent of multiplexes’ revenues.
“Maharashtra is a very key state for Hindi film releases because it contributes about 20-25 percent of revenue of Hindi film. We are hoping that we will get permission soon to open in Maharashtra,” he said.
The Maharashtra government has been wary of opening up of cinema halls, fearing a fresh outbreak of COVID-19 cases, especially with the festive season underway.
Sood said the first six to eight weeks after reopening is expected to be challenging.
Source: CNBC-TV18
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