Multiplex chain PVR Inox on August 1 reported a net loss of Rs 44.1 crore in the first quarter of fiscal 2024 against a net profit of Rs 68.3 crore in the year-ago period, hit by a below-average performance of Hindi films, a slow recovery in footfalls and cinema advertising revenue.
Analysts had expected the company to report a loss of over Rs 91 crore in the June quarter.
While the multiplex operator's profit was down year on year (YoY), sequentially, the company narrowed the losses from Rs 285.7 crore in the previous quarter.
Revenue, too, was better than expected, up 31.7 percent YoY at Rs 1,266.6 crore. Sequentially, revenue was up 14.6 percent from Rs 1,104.5 crore in the March quarter. Analysts had pegged a 13 percent QoQ increase in revenue.
The company's income at Rs 1,324.4 crore, was down 16 percent from the year-ago period.
"The Hindi box office showed a gradual reduction in quarter-on-quarter (QoQ) volatility, accompanied by improved performance of mid-scale Hindi movies, indicating a growing appetite for fresh Hindi content among the audiences," Managing Director Ajay Bijli said.
The company reported an average ticket price (ATP) of Rs 246 and spend per head (SPH) of Rs 130. Analysts had expected ATP to dip 2 percent YoY, as the year-ago quarter saw the release of big-ticket movies like RRR and KGF 2.0, which had high ticket prices. Analysts estimated SPH to grow 7 percent YoY.
It was expected that the company would report ATP at Rs 245 and SPH at Rs 129 in the June quarter. The theatre chain reported 2 percent increase in ATP and 10 percent increase in SPH YoY. The company had reported an ATP of Rs 239 and SPH of Rs 119 in Q4 FY23.
Gross box office collection was down at Rs 830.3 crore from Rs 1,046.7 crore in the year-ago period.
The company reported a 9 percent increase in screen expansion in the June quarter, with the number of screens at 1,697.
The multiplex operator opened 31 new screens in fibe cinemas. "We exited 14 underperforming screens across four cinemas in line with our focus on profitable growth. These planned exits form part of the guidance we had given in the last quarter. As on date our screen portfolio stands at 1,707 screens across 361 cinemas in 114 cities in India and Sri Lanka," the firm said.
Muted business
The quarter witnessed a muted start in April, with limited movie releases in Hindi.
The box office picked up pace in May with the release of The Kerala Story, which turned out to be the biggest release of the quarter along with other superhits like Fast X and Guardians of the Galaxy Vol 3 from Hollywood, and 2018 in Malayalam.
The momentum continued in June with the release of Adipurush, which recorded highest weekend admissions in 2023, but didn’t do well after the first weekend, the company said.
Other movies that delivered reasonable performances were Spiderman: Across the Spiderverse, The Flash, and Transformers: Rise of the Beasts from Hollywood. Regional movies like Carry on Jatta 3 in Punjabi and Baipan Bhari Deva in Marathi, which were released towards the end of the quarter, recorded strong performance, PVR Inox said in a release.
The company added that Q1 FY24 saw the release of the highest number of Hollywood movies post-pandemic, which, combined with a robust performance at the box office, led to a growth of 70 percent in quarter-on-quarter box office collections for Hollywood films.
"The recent success of Hollywood blockbusters like Oppenheimer, Mission Impossible: Dead Reckoning Part 1 and Barbie reaffirms our belief that audience’s enthusiasm for theatrical moviegoing remains intact when there is compelling content," the company said.
The PVR Inox stock closed at Rs 1,564 on NSE, up 0.44 percent from the previous close.
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