PVR has posted a higher than expected loss of Rs 71 crore in Q2; revenue increases

 


PVR reported its financial results for the second quarter ended September 30, 2022.


• PVR Q2 Results: India's largest multiplex operator operating revenue stood at ₹686.72 crore during the quarter under review. It was ₹120.32 crore in the corresponding quarter of last financial year


Leading multiplex chain operator PVR Ltd on Monday reported a higher-than-expected loss of Rs 71.23 crore in the second quarter (Q2FY23) as there were less crowds at Bollywood and Hollywood film screenings, affecting ticket prices. This is a decline of 53% from ₹153.13 crore posted in the same period last year (Q2FY22).


The Company's revenue from operations during the quarter under review was `686.72 crore. It was ₹120.32 crore in the corresponding quarter of the previous financial year.


PVR's total income was also ₹703.13 crore as against ₹275.21 crore in the same quarter.


EBITDA for the quarter came in at ₹170 crore as compared to ₹86.8 crore in the corresponding quarter in FY22.


Its total expenditure in Q2FY23 was ₹813.33 crore, as against ₹460.68 crore in the year-ago period.


Admission, average ticket price hit by weak performance


PVR said in a regulatory filing that admission and average ticket prices during the quarter were impacted by the weak performance of Bollywood and Hollywood films.


"We remain focused on bringing back our theatrical entry. India's love for films was well demonstrated by the massive success of 'National Cinema Day'. I'm in a business driven by a strong content lineup for this year We are confident of full recovery and Ajay Bijli, Chairman cum Managing Director, PVR Ltd. said that we are taking various initiatives to rekindle the habit of cinema among our loyal patrons.


The multiplex chain is set to merge with rival Inox Leisure in an all-stock deal and become India's largest exhibition firm with 1,546 screens across 109 cities.


As the country moves towards normalcy after a prolonged period of the pandemic, production houses have now started issuing releases banking on top celebrities with "just theatre".


Moreover, the shrinking losses underscore the gradual recovery in the film business after the devastating Covid-19 pandemic that lasted for more than two years.


The multiplex operator, in its last quarter, revived its capital expenditure plans in a significant way and plans to open 125 new screens in this financial year.


Further, the company reported that around 18 million viewers visited theaters during the quarter under review.


PVR said, “We witnessed a massive 6.5 lakh admissions on National Cinema Day, which was attended by 80%, which was the second highest ever attended day.”


The company added 14 screens across three properties during the quarter. PVR now operates 175 cinemas with 864 screens in 76 cities.


Shares of PVR Ltd were trading 1.34% higher at ₹1,714.60 on the NSE in afternoon deals.

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