Indian cinema operator PVR Inox's results disappoint as streaming platforms hurt footfall

PVR INOX

15/10/2024 11:20

Oct 15 (Reuters) - India's largest multiplex chain PVR
Inox  PVRL.NS  reported its third straight quarterly loss on
Tuesday, as a ho-hum Bollywood lineup and rising demand for
streaming services kept movie-watchers at home.
    That hurt box-office collections and food and beverage sales
at PVR Inox's outlets.
    The company, formed by the merger of PVR and Inox labels,
posted a consolidated net loss of 118 million rupees ($1.40
million) in the quarter ending Sept. 30 versus a year-ago profit
of 1.66 billion rupees. 
    Analysts, on average, had expected a profit of 137.7 million
rupees, data compiled by LSEG showed.
    India's movie halls have been struggling to fill seats in
recent quarters as consumers have curbed discretionary spending
amid higher inflation, forcing multiplexes to introduce
lower-priced weekday movie passes and cut popcorn prices.
    The lack of compelling new movie releases has also added to
their agony, making many multiplex chains resort to playing
classics to win audiences.
    In India, popular streaming platform Disney+ Hotstar is the
market leader with 38 million users, while estimates showed
Netflix  NFLX.O  has around 10 million.
    PVR Inox's total revenue fell 19% to 16.22 billion rupees in
the September quarter, with movie ticket sales dropping 25% and
food and beverage sales 18% lower. 
    The occupancy rate fell to 25% from 32.3% in the year-ago
period.
    PVR Inox said it expects to add 110-120 screens in the year
ending March 2025. So far this fiscal year, it has added 71 and
closed 42 screens.
    
($1 = 84.0675 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Dhanya Skariachan and Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))