WHAT!? PVR INOX Suffers Loss Of Rs 333.37 Crore In Fourth Quarter; Multiplex Chain To SHUT DOWN Over 50 Loss-Making Cinemas
PVR had reported a loss of 1.05 billion rupees a year, when the two companies were separated
Leading cinema multiplex operator PVR INOX Ltd, earlier known as PVR Ltd, has reported a stirring quarterly loss of Rs 333.37 Crore ($ 40.72 million) on Monday. The company is suggested to be hit by one-time impairment charges and expenses related to the planned shutdowns of some cinemas.
For those unaware, PVR INOX Ltd was formed by the merger of India’s two leading multiplex operators earlier this year, and it took an accelerated depreciation charge of 105.8 million rupees on 50 loss-making cinemas it plans to shut down over the next six months, reported TimesNow.
Following the pandemic, Cinema operators in India have been struggling to make ends meet. The situation turned critical, as OTT emerged as the ultimate entertainment portal for film enthusiasts, prompting PVR and Inox to join forces.
The leading multiplex operator plans to open 150-175 more screens in the fiscal 2024. It also took an impairment charge of 108.2 million rupees related to a project in a Bengaluru mall which was suspended, the company said as reported by TimesNow. PVR INOX is reporting results for the first time after the completion of the merger.
Earlier, PVR had reported a loss of 1.05 billion rupees a year, when the two companies were separated.
"While there has been some volatility at the box office over the past few months, we are confident that this trend will settle down over the next two to three quarters," PVR INOX said.
Meanwhile, the revenue for the quarter stood at 11.43 billion rupees, and total expenses were at 13.64 billion.
Bollywood hit 'Pathaan' was among the few films that brought in customers in the quarter, while Hollywood films like 'Ant-man and The Wasp - Quantamania' and 'John Wick-4' had a "decent performance", the company added.
Nevertheless, many consumers had even confronted the multiplex about soaring prices of the tickets and food. Yet no steadfast decision was made against the demands.
Average ticket prices in the quarter decreased to 239 rupees from 244 rupees in the previous quarter, while the average food and beverage spend per patron was 119 rupees, down from 133 rupees.
Shares of the company closed 1.2% higher on Monday ahead of the results.
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