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PVR Reports A Muted Growth; Box Office Collections Fall 5%

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PVR

PVR – engaged in the business of film exhibition, distribution and production as well as providing in-house advertisement, bowling and gaming alley and restaurant business.
Muted growth in Q2 FY17 (Sultan, Rustom, Pink) against a strong Q2 FY16 (Bajrangi Bhaijaan, Baahubali and Drishyam). Most of the lower belly films (Dishoom, Happy Bhaag Jayegi which competes against Welcome Back and Mission Impossible Rogue Nation) didn’t do well.
Box Office Contribution of Top 5 films stood at 51% in Q2 FY16, while in Q2 FY17 it witnessed a drop to 46%. While the Occupancy was 50% last year, this time it stood at only 40%.
2% drop in attendance i.e. 3 lakhs footfalls, 15% growth in Net Revenues from Rs. 486 crore to Rs. 559 crore, 5% contract in Net Profit to Rs. 29.1 crore from Rs. 30.7 crore. Other Income witnessed a drop of 57% from Rs. 11.41 crore to Rs. 4.86 crore.
At the end of Q2, the company’s screen portfolio stood at 121 properties (against 106), 557 screens (against 474) accommodating 127,520 seats (against 111,763). Footfalls stood at 185 lakhs (against 188 lakhs) and Occupancy rate fell by 5% from 37.1% to 32.1%.
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Segmental Revenue:

  • Average Ticket Price increased 8% from Rs. 187 to Rs. Rs. 202 while Net Box Office stood at Rs. 278.06 crore against Rs. 266.18 crore
  • Net Box office revenue which contributed 59% of the revenue, stood at Rs. 278 crore against Rs. 266 crore – recording a growth of 4%
  • F&B or Food and Beverages revenue stood at Rs. 139.63 crore against Rs. 119.59 crore – a 17% growth
  • Sponsorship Revenue bumped from Rs. 46.13 crore to Rs. 62.43 crore – a 35% jump
  • Other Operating Revenue grew more than 50% from Rs. 20 crore to Rs. 32.58 crore
  • Revenues from DT screens contribute 10% currently as they are still being renovated
  • Genre wise contribution stood as – Bollywood 63% (against 50%), Regional 22% (against 34%), Hollywood 15% (unchanged)
  • Net Debt increased from Rs. 400 crore to Rs. 681 crore (mostly on account of borrowing for the acquisition of DT Cinemas).

Banking on Diwali and a good pipeline (Shivaay featuring Ajay Devgan) and (Dear Zindagi Alia Bhatt and Shah Rukh Khan) hope to bring it a good set of numbers.
A total of 36 movies are scheduled up to Jan-17 with the company slated to add 13 new screens by the end of Q3 FY17 and another 31 additional screens by the end of Q4 FY17.