 "PVR Q3 net falls 5% to Rs 30 cr")
PVR, the company that runs cinema chain by that name, reported Rs 507 crore in consolidated revenues for the quarter ended December, up 21 per cent versus a year ago.
The growth in revenue was driven by increase in income food and beverage (F&B) and cinema advertising. While footfall at PVR properties grew three per cent, the F&B revenues grew 13 per cent, and sponsorship revenues were up 29 per cent. Consolidated Ebitda for the quarter was Rs 92 crore as against Rs 83 crore in the same period last year, up 11 per cent. However, due to a steep increasein tax expenses (Rs 11.92 crore in Q3FY16 compared to Rs 32 lakh in Q3FY15), the net profit was a bit down at Rs 30 crore in the quarter under consideration when compared to last year (Rs 31.6 crore).
Ajay Bijli, Chairman cum Managing Director,PVR Ltd said “This will be a landmark year in PVR’s journey as the companyturns free cash flow positive and expects to fund its organic growth throughinternal accruals. Our growing circuit of high quality cinemas, heightenedlevels of demand for movie watching and our company-wide emphasis on customerservice excellence remain critical factors in our ability to generate positiveoperating results over the long-term. We have maintained the position as leadingmultiplex player and will be the first Multiplex chain in India to surpass 500screens mark in this quarter.”
“Footfalls at the properties on a like-to-likebasis were flat, and overall, showed a three per cent rise. However, in 2014 December,we had the release of PK, which drove a lot of footfalls. In the December quarter,Dilwaale was a bit of a dampener as was Tamasha and thus it affected thefootfalls,” says Nitin Sood, CFO, PVR Limited.
He informed that Hollywood filmsalso failed to deliver the punch that was expected with Bond’s Spectre justabout meeting expectations and Star Wars: The Force Awakens underperforming interms of footfalls. The company also distributed two Bollywood movies during the quarter – Singh is Bliing and Dilwaale.
Sood informed that thebusiness operates at 3-5 per cent margins and does not yet significantly contributeto the topline to bottomline. However, PVR will be looking at growing thedistribution business for Bollywood films in the coming quarters. During the first 10 months PVR added 27screens across Bokaro, Vadodara & Kolhapur, Chennai and Bangalore andcurrently operates a network of 491 screens spread over 109 properties in 44cities across the country. The company continues its aggressive expansion plansand intends to add approx another 25-30 screens in the current quarter.
“January seems to be off to a good startwith Airlift doing very well at the box office. If it maintains the momentum ishas right now, it might well be the best film of Akshay Kumar’s career so far. Goingto February and March, the content pipeline is strong with movies like Fitoor,Ghayal Oce Again, Jai Gangajal, Kapoor and Sons etc. We expect a better Q4 thisfiscal than the last, especially since there is no Cricket World Cup this year,” says Sood.
