On Monday, multiplex operator PVR INOX Ltd disclosed a quarterly loss of 3.33 billion rupees ($40.72 million). This setback was primarily attributed to one-time impairment charges and expenses linked to the anticipated closures of certain cinemas.
Following the merger of India’s leading multiplex operators earlier this year, the company stated that it incurred an accelerated depreciation charge of 105.8 million rupees for 50 underperforming cinemas that it intends to close down within the next six months.
Cinema operators in India have faced significant challenges since the onset of the pandemic. The imposed lockdown measures compelled people to stay at home, leading to a surge in the popularity of streaming platforms among movie enthusiasts. In response to these circumstances, PVR and Inox, recognizing the need for adaptation, decided to merge forces
In the fiscal year 2024, PVR INOX has outlined its intentions to expand further by opening an additional 150-175 screens.
Furthermore, the company revealed that it incurred an impairment charge of 108.2 million rupees associated with a project located in a Bengaluru mall, which had been suspended. These financial details are being reported by PVR INOX for the first time following the successful completion of the merger.
During the previous year when PVR and INOX operated as separate entities, PVR had reported a loss of 1.05 billion rupees.
PVR INOX expressed optimism that the recent volatility observed at the box office will stabilize in the coming two to three quarters.
The revenue for the quarter amounted to 11.43 billion rupees, while the total expenses reached 13.64 billion rupees.
According to the company, the Bollywood blockbuster ‘Pathaan’ was one of the films that attracted customers during the quarter. Additionally, Hollywood movies such as ‘Ant-Man and The Wasp: Quantumania’ and ‘John Wick 4’ delivered a respectable performance at the box office.
The average ticket prices in the quarter dropped to 239 rupees compared to 244 rupees in the previous quarter. Simultaneously, the average expenditure on food and beverages per patron decreased from 133 rupees to 119 rupees.
Shares of the company concluded Monday’s trading session with a 1.2% increase, anticipating the release of the financial results.