Multiplex operator PVR is looking at increasing contribution from its non-core businesses such as food and beverages and advertisingto reduce its dependence on ticket sales.
"We would like contribution of box office sales to go down so that dependence on ticket sales (goes down) ... whilethat is our core business ... That is the reason we exist but we would like the other revenue segmentsto come up in a way.. So that share of box office remains the same or goes down. We will be comfortable if it goes downslightly," PVR Chief of Strategy Kamal Gianchandani told PTI.
When asked about what ideal percentage contributionof box office sales to its total revenue should be, he said:"I am not putting any number to it .. It is coming down in a gradual fashion. We are happy if the same rate continues going forward. In the last 4-5 years, it has come down from 70 oddper cent to 57 per cent at present".
For the nine-month period ended December 31, 2016, box office sales accounted for 54.7 per cent of total sales (Rs852.8crore), whilefood and beverage and advertising contributed to 27.1 per cent (Rs422 crore)and 12.3 per cent (Rs 192.3 crore)respectively. Around 6 per cent (Rs 91.7 crore) sales came fromother segments during the period.
In 2015-16, box office salesaccounted for 57.4 per cent (Rs1,014.3 crore) of total sales.
Gianchandani said the company witnessed strong sales in the fourthquarter of previous fiscal on the back of strong content pipeline.
"This fourth quarter is the best we have seen in thelast 7-8 years due to strong content pipeline. There was'Dangal' which ran for 7-8 weeks .. It generated enormous amount of footfalls. Later, we also had 'Raees' and 'Kaabil', 'Jolly LLB'and Oscar-nominated and Hollywood releases as well," he said.
"We have also got strong content pipeline for this fiscal. It is mix of Hollywood and big Bollywood films. It isa strong year in terms of content," he added.
PVR, which has launched various initiatives including theatre-on-demand service Vkaao, virtual reality lounges VR Lounge and 'Book now, Pay later' service, enabling micro credit facility to its customers, in 2017, said the company will announce more technology driven services going forward.
"Innovation is a key element of PVR's DNA and we are trying to come out with solution to fill customers need gaps. Weare working on lot of tech driven initiatives. You will hear more from us going forward," Gianchandani said.
Gianchandani said the company expects theatre-on-demand service Vkaao to contribute 2.5 per cent to 3 per cent to its total salesin two years time.
PVR operates 570 screens in over 120 properties across India. It plans to open another 70-80 screens in the next fiscal.
Disclaimer: No Business Standard Journalist was involved in creation of this content
