Cinema chain operator PVR Ltd has posted a net profit of Rs 3.88 crore for the quarter ending June 30, a drop of 35.5 per cent as compared with Rs 6 crore in the same quarter last year. Reduced occupancy in multiplexes, large popularity of the Indian Premier League (IPL) and lack of quality film releases during the quarter were the reasons cited for the decrease in profits .
The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBIDTA) of the company also declined from Rs 13.85 crore in Q1 2007-08 to Rs 12.05 crore during the quarter under review.
However, the total revenue for the first quarter stood at Rs 62.59 crore, a growth of 11 per cent compared to Rs 56.59 crore during the corresponding quarter ended June 2007 due to higher realisation from the sale of tickets, food and beverage across the circuit, the company said in a statement.
Overall occupancy of PVR dropped to 32 per cent from 42 per cent when compared to the same quarter, year ago, but higher ticket and food and beverage realisations across cinemas and advertising revenues helped revenue growth, it said. Advertising revenues of the company grew by 62 per cent to Rs 9 crore, while the sale of food and beverages saw a 10 per cent growth to Rs 12.35 crore, it said.
The expenditure of PVR grew by 18 per cent in the quarter under consideration to Rs 54.84 crore from Rs 46.18 crore same period, last year led by higher rent, employee cost and distributor margins.
"The quarter was impacted on account of the launch of Indian Premiere League (IPL), a cricket extravaganza, that lasted for a period of 45 days, coinciding with the school and college holidays," the company said.
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Ajay Bijli, chairman and MD, PVR said, “While the lack of content during the quarter under review has impacted the footfalls during the quarter under review for the entire cinema industry, the long term visibility of the business remains buoyant."
During the quarter under review, the company opened three multiplex properties comprising of 17 Screens, taking its total screen count to 101 screens. PVR Pictures, a subsidiary of PVR Ltd, also secured a private equity investment worth Rs 120 crore from ICICI Venture (Rs 60 crore) and JP Morgan Mauritius Holding (Rs 60 crore) for a 20 per cent stake to each of the investors in the same quarter. "The funds will be used to add muscle and diversity to the company’s production and distribution portfolios in the coming year. PVR Pictures is now owned 60 per cent by PVR Ltd," the company said.