PVR revenue grows 6%, operating profit flat

Cinema exhibition chain PVR report consolidated revenues of Rs 540 crore for the quarter ended December 31 (Q3FY17) as compared to Rs 509 crore during the corresponding period of last year, up six per cent. Consolidated operating profit for the quarter was Rs 91.1 crore, almost flat as compared to same period last year while consolidated profit after tax for the quarter was Rs 23.5 crore.
 
The company has delivered a decent financial performance considering that the quarter was impacted by demonetisation. Limited cash supply made people defer their movie watching by a few days or weeks during the quarter. However, the stellar performance of Dangal towards the end of the quarter helped stage a sharp recovery in consumer sentiment.
 
PVR became the first multiplex chain in India to deliver 100 crores of gross box office collection for any movie in India.
 
The company offered various discounts and promotions to customers in view of demonetisation as a result of which average ticket prices were flat. However average spend per person on F&B saw an increase of 11 per cent from Rs 74 to Rs 83. Despite a challenging environment and cutback on Ad spends by various corporates, the company managed to post a decent growth of 13 per cent in its advertising revenues.
 
During the current financial year PVR added a total of 55 screens and currently operates a network of 569 screens spread over 123 properties in 48 cities across the country. The company intends to add approx another 25-30 screens in the remaining part of the year.
 
Commenting on the results and performance, Ajay Bijli, Chairman cum Managing Director, PVR Ltd said, “Despite a challenging short term disruption caused by demonetisation the company has managed to post a decent growth in all revenues. The recent success of films like Dangal, Raees & Kabil have indicated that the bounce back and the recovery has been quick. We are optimistic regarding the box office prospects in forthcoming quarters on back of strong content pipeline and consumer demand. We are the leading multiplex player in India and will surpass the 600 screens mark in current financial year."