Multiplex chain operator PVR movies posted a net loss of 71.23 crores for the second quarter after Bollywood and Hollywood films underperformed. But compared to the net loss of 152.39 crores reported in the same quarter last year when lockdowns were still common, its losses shrank by half.
PVR Cinemas Ticket Price
From 120 crore in the previous year’s second quarter, operating revenue increased five times to 686 crores for the quarter ending in September.
The business stated in a statement to exchanges that admissions and average ticket prices during the quarter were hurt by the lackluster performance of Bollywood and Hollywood movies.
PVR Blamed the Losses on Bollywood Box Office
PVR blamed the losses on persistently poor Bollywood box office collection. The majority of the other high-budget Bollywood films, such as Laal Singh Chaddha, Raksha Bandhan, and Liger, underperformed expectations, according to PVR, except for Brahmastra Part One: Shiva.
According to PVR, content has taken precedence over the appearance of stars in movies to attract viewers. The company claims several factors, including films made before and during the pandemic not fitting well with current consumer tastes, quality of content driving performance rather than star presence, and negative social media against specific Bollywood movies and stars, are to blame for the underperformance of Hindi films. This was the first quarter in almost two decades where fewer movies were released and made less money at the box office, even for Hollywood. Hollywood movie box office receipts for PVR fell by 47% in the second quarter of FY23 compared to the same period in FY20.
PVR Share Price Nse
The multiplex operator announced plans to open 125 more screens this fiscal year and significantly resurrected its investment ambitions in the preceding quarter. Additionally, the business reported that about 1.8 crore patrons attended the theatres during the quarter under review. The second-highest attended day in history, National Cinema Day saw enormous 6.5 lac admissions with an occupancy rate of 80%, according to PVR.
During the quarter, the company expanded its screen count by 14 across three buildings. PVR now runs 175 theatres with 864 screens in 76 cities. During the afternoon trade, PVR Limited shares traded 1.34% higher at 1,714.60 per share on the NSE.
Regional Movies Remain Outliers, According to PVR Movies
Regional business is the exception, as these films continued to do well. Regional film box office revenue climbed for PVR from 28% in the second quarter of FY20 to 44% in the second quarter of FY23. During the quarter that concluded in September 2022, films like Sita Ramam, Kartikeya 2, Thiruchitrambalam, Rocketry, and Vikrant Rona did well. Their goal is to increase attendance at our theatres. Ajay Bijli, chairman and MD of PVR, stated they are sure of a full recovery in the business powered by the solid content line-up for this year and the various initiatives they are implementing to rekindle the cinema-going habit amongst our devoted consumers.
According to the company, the National Business Law Tribunal procedure for the merger of PVR movies with INOX Leisure is anticipated to be finished in the upcoming three to four months.