PVR sees wider than expected Q2 loss at ₹71 crore; revenue rises

Leading multiplex chain operator PVR Ltd on Monday reported a bigger-than-expected second quarter (Q2FY23) loss at ₹71.23 crore, as lacklustre Bollywood and Hollywood movie performances drew fewer crowds, hitting 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 was up at ₹686.72 crore during the quarter under review. It was ₹120.32 crore in the corresponding quarter last fiscal.

PVR's total income was also up at ₹703.13 crore, as against ₹275.21 crore of the corresponding quarter.

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

It's total expenses were at ₹813.33 crore in Q2FY23, as against ₹460.68 crore in the year-ago period.

Admissions, average ticket price impacted by weak performance

Admissions and average ticket price during the quarter were impacted by the weak performance of Bollywood and Hollywood movies, PVR said in a regulatory filing.

"We remain focused on driving admissions back to our cinemas. India's love for movies was well demonstrated by the massive success of the 'National Cinema Day'. I am confident of full recovery in the business driven by the robust content lineup for this year and the various initiatives that we are implementing to rekindle the cinema going habit amongst our loyal patrons," Ajay Bijli, Chairman cum Managing Director, PVR Ltd said.

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 inches towards normalcy after a prolonged period of pandemic, production houses have now started going with "theatre only" releases banking on top celebrities.

Further, the shrinking losses underscore the gradual recovery in movie business after the devastating Covid-19 pandemic that lasted for over two years.

The multiplex operator, in its previous quarter, revived its capex plans in a significant manner and laid out a plan to open 125 new screens this financial year.

Further, the company informed that around 1.8 crore patrons visited the cinemas during the quarter under review.

"We witnessed massive 6.5 lac admissions on National Cinema Day with occupancy of 80%, which was the 2nd highest attended day till date," PVR said.

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

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