Multiplex chains ride high on rising income from convenience fee

PVR's income from convenience fee was Rs 33 crore in 2015-16 and Rs 130 crore in 2018-19.

Income from convenience fee, a charge taken from customers when they book their tickets over a digital platform, has grown at a rapid pace for multiplex chains in the past four years as the share of online ticket sales has grown steadily. 

It assumes significance as advertising revenue growth has been weak. Data ana­lysed by SBICap Secu­rities show revenue from convenience fee has grown at a compound annual rate of 85 per cent for multiplex chain operator Inox Leisure and 58 per cent for PVR.

Anshul Agrawal, analyst with SBICap, noted: “PVR’s convenience fee have grown 4x in the past three years