Occupancy trends key to sense theatre chain PVR's cash flows: Analysts

Company sharply reduces employee costs and rental charges, but has to offer heavy discounts on tickets and snacks

With theatres shut, PVR’s revenues in the September quarter were negligible for a second consecutive quarter. While sales were higher on a sequential basis, screening restrictions meant revenues were down 96 per cent over the year-ago period. Income from movie distribution and non-operating income accounted for the bulk of quarterly revenues. 

As in the previous quarter, the focus remained on cost-control measures. There was a sharp reduction in employee costs and rentals/maintenance charges. While employee costs are down 61 per cent, rent and common area maintenance (CAM) charges were down 86 per cent. These two account for two-thirds of overall expenses. 

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