PVR Q3 profit falls 21.3% on demonetisation woes
PVR’s net profit fell to Rs23.5 crore in the December quarter from Rs29.88 crore in the year-ago period
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New Delhi: PVR Ltd, which runs a chain of cinema halls, posted a 21% fall in December quarter profit on Friday as movie audiences dwindled after the demonetisation of high-value banknotes.
Net profit fell to Rs23.5 crore in the quarter from Rs29.88 crore in the year-ago period. Revenue rose 6% to Rs540 crore from Rs509 crore in the same period. The company said,it has delivered a “decent financial performance” considering the 8 November outlawing of Rs500 and Rs1,000 currency notes, which caused a cash crunch.
Limited cash supply caused a dip in discretionary spending and made people put off visits to the movies. The release of Aamir Khan’s smash hit Dangal towards the end of the quarter and an easing of the cash shortage brought the audiences back.
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PVR said it offered various discounts and promotions to customers following demonetisation as a result of which average ticket prices remained flat. Average spending per person on food and beverages saw an increase of 11% from Rs74 to Rs83.
“Despite a challenging short-term disruption caused by demonetisation the company has managed to post a decent growth in all revenues. The recent success of films like Dangal, Raees & Kabil has indicated that the bounce-back and the recovery have been quick. We are optimistic regarding the box office prospects in forthcoming quarters on the back of strong content pipeline and consumer demand,” said Ajay Bijli, chairman and managing director, PVR Cinemas.
During the current financial year, the multiplex operator has added a total of 55 screens and operates a network of 569 screens spread over 123 properties in 48 cities across the country. The company intends to add another 25-30 screens this year.