Jobaaj Stories
Screening giant PVR Inox has published its first results since the merger as investors were thoroughly disappointed by the company’s lacklustre performance as the company’s stock declined over 2% in today’s session.
In the quarter ended in March 2023, the company’s revenues doubled as it reported an income of Rs 1,164.9 crores. Its EBITDA doubled as well as the same stood at Rs 285.6 crores with a margin of 24.5%, 10x times higher than the margin reported last year. PAT for the quarter was a loss of Rs 334 crores against a loss of Rs 105.5 crores reported in the corresponding quarter last year.
For FY23, the total income of the company grew 131% to Rs 3,829.7 crores. The sale of movie tickets accounted for half of the revenues and it grew 2.5x times during the year. All segments showed robust growth but Advertisement Income grew the most as it surged more than 4x times during the year.
The no. of cinemas at the end of the year almost doubled to 359 while the number of screens doubled to 1,680. Every year, occupancy improved by 230 bps, but the same was still low at only 26.4%. The language-wise mix saw a significant change as the contribution of Regional language movies improved while the same from Hindi & English language movies declined.
Total expenses almost tripled to Rs 2,703 crores as there were high depreciation write-offs for certain cinemas, greater impairment costs, higher merger-related expenses and a greater deferred tax write-off. EBITDA saw significant improvement as the same was Rs 1,127 crores, up almost 3x times. At the end of the year, the company had a net loss of Rs 336.4 crores, which was 31% lower than the net loss of Rs 488.5 crores reported in FY22.
The company has also declared that it will be permanently closing 50 screens within the next six months that are either operating at a loss or are located in malls that have reached the end of their life cycle and have little to no hope for revival.
The stock of PVR Inox closed at Rs 1,434.90 per share, down 2.04% in today’s session.
- Aman Agarwal
Also read, NSE reports 41% jump in profits, announces 8,000% dividend.
