PVR December quarter net loss narrows by three-fourth to Rs 49 crore

Net loss in the September quarter was Rs 184 crore; December quarter saw re-opening of multiplexes as part of unlock

Multiplex operator PVR reported a net loss of Rs 49 crore in the quarter ended December 31, 2020 (Q3) as the coronavirus impact lingered during the period. But the good news is that it was lower than the net loss of Rs 184 crore reported in the September quarter, when multiplexes had not reopened at all. A year ago, PVR had reported a net profit of Rs 36 crore in the December quarter.

Q3 saw the re-opening of multiplexes as part of the government's Unlock programme, the last amongst businesses to reopen. PVR said it was yet to re-open 56 screens in 13 cinemas as of 15 January, since rental negotiations were ongoing. "Discussions with landlords is in progress and is expected to close in the near future," it said.

Revenue from operations declined 95 per cent to Rs 45.4 crore in Q3 as compared to Rs 916 crore in year-ago period.

This, PVR said, was on account of staggered state-wide re-openings, capacity restrictions and limited movie releases, which impacted footfalls though costs continued to be incurred.

PVR said it had streamlined its operations introducing private screenings to improve footfalls. Here, small groups were allowed to hire auditoriums to enjoy the content of their choice.

While Bollywood is yet to release its Hindi blockbusters, regional film producers including Tamil, Telugu and Bengali have begun launching big movies. Tamil movie Master, for instance, had a big opening on the occasion of Pongal on Thursday and continues to remain strong.

Experts said that as the vaccination drive begins in the country, footfalls into theatres would improve.