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PVR reports losses of 184 crore for Q2 2021

Corona warriors and their families watch a special screening of a movie as cinemas reopened amid concerns over the spread of the COVID-19, at PVR ICON, DLF Promenade Mall, Vasant Kunj, in New Delhi on Thursday, (ANI Photo)
Corona warriors and their families watch a special screening of a movie as cinemas reopened amid concerns over the spread of the COVID-19, at PVR ICON, DLF Promenade Mall, Vasant Kunj, in New Delhi on Thursday, (ANI Photo)

Results for quarter ended September 30, 2020 are not comparable with results for quarter ended September 30, 2019 as temporary closures of cinemas and suspension of operations have impacted business operations

New Delhi: Multiplex chain PVR Cinemas has reported consolidated losses of Rs. 184 crore for Q22021 as compared to profit of Rs. 48 crore during the corresponding period of last year. Consolidated revenue for the period ended 30 September fell from Rs. 979 crore to 111 crore during the corresponding period of last year, a drop of 88.6%, impacted by outbreak of covid-19 and consequent lockdown and theatres being shut down across the country throughout. Consolidated EBITDA loss for the quarter was 14 crore as against a positive EBITDA of 324 crores in the same period last year.

Results for quarter ended September 30, 2020 are not comparable with results for quarter ended September 30, 2019 as temporary closures of cinemas and suspension of operations have impacted business operations, the company said in a statement. Permits to reopen cinemas came in from the ministry of home affairs only at the end of September and the chain has notched up no operational revenue for the quarter except for the sale of F&B (food and beverage) from subsidiary Zea Maize and PVR Lanka, besides income from sale and distribution of movie rights from our subsidiary PVR Pictures.

PVR had almost ‘nil’ revenues during the quarter from core movie exhibition business with the exception of one property in Colombo. With 100% revenue decline, the company reported significant losses in Q2, driven by the continuing fixed costs.

The company had initiated a series of short-term and long-term measures to aggressively control costs as well as augment liquidity. PVR further strengthened its cost control measures resulting in 71% savings YoY in total fixed costs excluding rent and CAM (common area maintenance). Monthly fixed cost excluding Rent and CAM dropped to Rs. 24 crore in the quarter as against Rs. 86 crore in Q2 FY20.

The ministry of home affairs has, in its Unlock 5.0 guidelines, allowed cinemas to reopen 15 October onwards with 50% capacity. So far, 16 states and UTs, where PVR has presence, have permitted cinemas to restart operations. Out of total 831 screens of the company 575 plus have received permission to reopen.

“Most of our cinemas, which had shut down due to the pandemic in March have been allowed to reopen. We are eagerly waiting for re- opening of other states, specifically Maharashtra and Telangana, so that business can gradually get back to normal. We are taking all possible precautions so that both our customers and employees feel safe while visiting theatres," Ajay Bijli, chairman and managing director, PVR Ltd, said in a statement.

Karan Taurani, vice-president at Elara Capital Ltd said PVR results are largely in line as the cash burn on a monthly basis has reduced vs Q1FY21.

“One more thing that has come in their favour is the resumption of film shoots across the Hindi genre which will ensure proper content supply for FY22 though regional shoots in the south have not yet started completely. The news of Maharashtra opening up on 6 November too is a positive as it will definitely lead to a large Hindi film releasing on Christmas which have been further pushed towards January 2021," Taurani said.

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