Strong box office collection aids PVR’s Q2 growth

MUMBAI: Multiplex chain PVR Cinemas’ consolidated net profit for the quarter ended 30 September has jumped 38% to Rs 34.20 crore compared to Rs 24.72 crore in the same period last year.

The company’s PAT margin improved 40 Bps to 4.8% from 4.4%. EBIDTA also grew by 36% at Rs 130 crore from Rs 95.72 crore in the previous fiscal. EBITDA margin improved by 50 Bps to 18.2% compared to 17.1%.

PVR’s revenue was up by 28% at Rs 714.6 core from Rs 559.5 crore. Expenses were up 26% at Rs 584.5 crore compared to Rs 463.8 crore.

The top 5 movies – Sanju, Stree, Gold, Mission Impossible: Fallout, and Dhadak – contributed 44% to gross box office collection (GBOC) as against 29%. The footfalls of top 5 movies was higher by 75% than top 5 movies.

The total admits was up 14% at 2.14 crore while the occupancy was 33.4% compared to 29.6%. The average ticket price was up 4% Rs 211. The net box office collection increased 17% to Rs 3515 crore.

During the current financial year, PVR added 34 new screens across 7 properties and now operates a network of 727 screens spread over 156 properties in 61 cities across the country. The company intends to add 99 screens in FY 18-19.

PVR also completed acquisition of majority stake in SPI Cinemas, one of the largest cinema exhibitors in South India with presence in key markets of Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala and Mumbai. SPI Cinemas has a network of 76 screens (72 operational & 4 expected to commence operations soon) across 17 properties & 10 cities.

The company also renewed its ticketing agreement with BookMyShow and Paytm for three years for a total upfront consideration of Rs 410 crore. BookMyShow paid around Rs 235 crore to PVR, while Paytm paid over Rs 175 crore.

Commenting on the results and performance, PVR CMD Ajay Bijli said, “We are extremely pleased with the business performance in the current quarter with strong all round performance led by strong footfall growth. Our acquisition of SPI Cinemas in the current quarter has further cemented our leadership position in India. Post this acquisition PVR has become 7th largest cinema operator globally, serving over 100 million customers annually.

“We will continue to innovate and find newer ways to provide our customers with unparalleled movie watching experience by introducing cutting edge technology, newer cinema formats and innovative customer engagement initiatives. Our introduction of PVR Onyx Screen in PVR ICON, Vasant Kunj, New Delhi, continued focus on building on our loyalty program PVR Privilege, initiatives such as seat cancellations are steps in that direction. We are extremely excited by the growth prospects of our business and will continue to work towards taking the business to the next level.”

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