India's PVR posts wider than expected Q2 loss

PVR INOX

17/10/2022 10:25

BENGALURU, Oct 17 (Reuters) - India's top multiplex
operator PVR Ltd  PVRL.NS  on Monday reported a
bigger-than-expected second quarter loss, as lacklustre
Bollywood and Hollywood movie performances drew fewer crowds,
hitting ticket prices.    
    PVR's consolidated net loss for the quarter ended September
narrowed to 712.3 million rupees ($8.64 million) from 1.53
billion rupees in the pandemic-hit period a year ago, but was
bigger than analysts' expectations for a loss of 99.2 million
rupees, according to IBES data from Refinitiv.
    Admissions and average ticket price during the quarter were
impacted by the weak performance of Bollywood and Hollywood
movies, PVR said in an exchange filing.
    "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," said Ajay Bijli,
chairman and managing director of PVR.
     The multiplex chain is set to merge with rival INOX Leisure
 INOL.NS  in an all-stock deal and become the country's largest
exhibition company with 1,546 screens across 109 cities.
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     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.
 urn:newsml:reuters.com:*:nL3N2VV116    
    Further, the shrinking losses underscore the gradual
recovery in movie business after the devastating Covid pandemic
that lasted for more than 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 fiscal year. 
    Revenue from operations jumped 470.7% on year to 6.87
billion rupees, but slumped 30% from the previous quarter.
($1 = 82.4075 Indian rupees)
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((Yagnoseni.Das@thomsonreuters.com;))