PVR INOX posts Q4 loss on costs related to some cinema closures

PVR INOX

15/05/2023 15:22

BENGALURU, May 15 (Reuters) - Multiplex operator PVR
INOX Ltd  PVRL.NS  reported a quarterly loss of 3.33 billion
rupees ($40.72 million) on Monday, hit by one-time impairment
charges and expenses related to the planned shutdowns of some
cinemas. 
    The company, formed by the merger of India's top two
multiplex operators earlier this year, said it took an
accelerated depreciation charge of 105.8 million rupees on 50
loss-making cinemas it plans to shut down over the next six
months. 
        Cinema operators in India have been struggling ever
since the pandemic, when a lockdown forced people home and made
streaming more popular among movie enthusiasts, prompting PVR
and Inox to 
    join
     forces. 
  
    PVR INOX plans to open 150-175 more screens in fiscal 2024.
    It also took an impairment charge of 108.2 million rupees
related to a project in a Bengaluru mall which was suspended,
the company said. PVR INOX is reporting results for the first
time after the completion of the merger. 
    PVR had reported a loss of 1.05 billion rupees a year
earlier, when the two companies were separate. 
    "While there has been some volatility at the box office over
the past few months, we are confident that this trend will
settle down over the next two to three quarters," PVR INOX said.
    Revenue for the quarter stood at 11.43 billion rupees, while
total expenses were at 13.64 billion.
    Bollywood hit 'Pathaan' was among the few films that brought
in customers in the quarter, while Hollywood films like 'Ant-man
and The Wasp - Quantamania' and 'John  Wick-4' had a "decent
performance", the company said.
        Average ticket prices in the quarter decreased to 239
rupees from 244 rupees in the previous quarter, while the
average food and beverage spend per patron was 119 rupees, down
from 133 rupees.
    Shares of the company closed 1.2% higher on Monday ahead of
the results.

($1 = 81.7800 Indian rupees)

 (Reporting by Ashna Teresa Britto and Yagnoseni Das in
Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com;))