India's PVR Inox posts wider-than-expected Q4 loss on weak demand

PVR INOX

14/05/2024 10:13

BENGALURU, May 14 (Reuters) - India's largest multiplex
operator PVR Inox  PVRL.NS  reported a bigger-than-expected
fourth-quarter loss on Tuesday, hurt by a lack of interest in
Bollywood releases.
    The company reported a consolidated net loss of 1.3 billion
rupees ($15.6 million) for the March quarter, missing analysts'
estimate of a loss of 835.9 million rupees, as per LSEG data.
    The company was formed by a merger of PVR and Inox in
February 2023, and the results are not comparable
year-over-year.
    PVR Inox had posted a profit of 128 million rupees last
quarter.
    The quarter ended March 2024 marks PVR Inox's weakest
quarter in the year, the company said.
    The company flagged "significant volatility" in box office
collections, with demand muted despite major Bollywood releases
like "Fighter", "Shaitaan" and "Article 370".
    It also added that the ongoing general election has impacted
the flow of new releases, and that expects it to stabilize by
mid-June.
    Its occupancy slipped to 22.6% from 25.2% in the December
quarter.
    Coupled with these factors, it saw a 2% drop in average
ticket price, prompting a near 19% sequential drop in revenue.
    During the year, the company opened 130 new screens and
closed 85 screens. The company said plans to shut down
underperforming cinemas to reduce costs.
    It also said it would pursue box office initiatives like
screening alternate events like film festivals and sports, and
was evaluating monetising real estate assets in a bid to become
net debt free over the next few years.
    PVR Inox's shares, which were up 1% ahead of results, 
dropped 2.3% post results.


($1 = 83.5106 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Varun H K)
 ((AshnaTeresa.Britto@thomsonreuters.com;))