Robust box office collections are driving performance of big multiplex players like PVR and Inox
Slowdown, where? This is what film trade experts are tweeting as the movie business is showing no signs of slowing down.
In fact, October 2 recorded the highest single-day collection figures at all-India box-office, tweeted film trade analyst Komal Nahta.
The national holiday saw earnings of over Rs 120 crore recorded by three new releases- Hrithik Roshan-starrer War, Hollywood venture Joker and film from down south SyeRaa.
The break-up of the collections of the three films shows that the Telugu venture SyeRaa is the biggest contributor as it earned Rs 60.75 crore on the first day of its release.
Coming close is War that pocketed Rs 53 crore plus and Joker managed to earn Rs 5.75 crore amid all the competition from local films.
The three films have started one of the most crucial quarters for the film industry with a bang.
Expectations from the fourth quarter are high due to the festive period and it looks like film business will prove its might this year. After all, the first three quarters have put up a strong performance at the box office as well.
According to a tweet by film trade analyst Atul Mohan, from August 15 to September 30, Bollywood made more than Rs 700 crore which is around 25 percent of the entire earnings of 2018.
An Elara Capital report expects PVR and Inox Leisure to report box office collection revenue growth of 27 percent YoY and 44 percent YoY in Q2FY20, respectively.
The growth expectation is on the back of the success of Bollywood ventures like Saaho [Hindi], Kabir Singh, Mission Mangal, Super 30, Dreamgirl, Chhichhore and Batla House and Hollywood content like Lion King and Fast & Furious, which was led by strong footfalls and average ticket prices.
While PVR ad revenue is expected to grow at 11 percent YoY during the quarter, Inox is likely to be flat, due to ad spend cut by verticals, like auto, BFSI and real estate.
The cut in ad spend by various sectors is because they are reeling under the slowdown pressure and in some way that is impacting the exhibition business. However, when it comes to box office collection, the film business seems unaffected because people are going to theatres to watch movies.
Not every sector is directly impacted by the slowdown and the economics of every business is different. Yet, Bollywood had managed to do something similar during the last recession that happened in 2008.
Despite a lesser number of releases in 2008 at around 130, Bollywood recorded a growth of 7.7 percent in collections over the previous year. And while 2007 had 144 releases, the industry recorded Rs 1,493 crore in revenues as against Rs 1,608 crore in 2008.
Whether the entertainment industry is recession-proof or not is debatable, currently what is working for the movie space is the strong content delivery of each film.
In the upcoming months, cinephiles can catch up on films like Salman Khan-starrer Dabangg 3, Akshay Kumar’s Good Newwz, Ashutosh Gowarikar directorial Panipat, Ayushmann Khurrana’s Bala, among others.With a look at the content line-up for the fourth quarter, it seems good days are ahead for the film industry.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.