Moneycontrol
Last Updated : Mar 17, 2020 07:01 PM IST | Source: Moneycontrol.com

Coronavirus impact | Exhibitors may incur losses up to Rs 7,800 crore per month

Of this, Rs 3,500 cr - Rs 4,500 cr was slated to come from sale of movie tickets.

 
 
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The closure of theatres in India as a precautionary measure to contain the spread of coronavirus is set to cause huge losses to the domestic movie exhibition business.

According to analysts at Care Ratings, temporary shutdown of film theatres across the country may result in loss of revenue to the tune of Rs 5,800 cr- Rs 7,800 cr per month for film exhibitors.

Of this, Rs 3,500 cr - Rs 4,500 cr was slated to come from sale of movie tickets, including GST (goods and services tax) loss of Rs 800 cr- Rs 1,000 cr.

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Also, food and beverage sale will be affected, which will result in losses to the tune of Rs 1,500 cr to Rs 1,800 cr apart from additional revenue of Rs 900 cr - Rs 1,000 cr per month from advertising.

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Key sectors that advertise in cinemas such as automobiles, FMCG, gems and jewelry, telecom, banking and retail, had lowered their spends in recent months due to tepid growth.

"Release dates of most movies has been pushed to a later date, which will affect release dates of other movies that were expected to be released in next 3-4 weeks. Therefore, the ripple effect has been created and shall impact FY20’s last quarter revenues for film exhibitors," said analysts.

Multiplex stocks have been battered as scrips of operators such as PVR, Inox Leisure and Mukta Arts logging in huge losses.
First Published on Mar 17, 2020 06:58 pm
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