On Monday, multiplex operator PVR INOX Ltd announced a quarterly loss of 3.33 billion rupees ($40.72 million), owing to one-time impairment charges and expenses connected to anticipated movie closures.
Details on PVR Inox Ltd reports a Rs 3.33 billion loss in the fourth quarter
The business, which was founded earlier this year by the merging of India’s top two multiplex operators, said it incurred an accelerated depreciation charge of 105.8 million rupees on 50 loss-making cinemas that it wants to close down over the next six months.
Since the pandemic, when a lockdown pushed people indoors and made streaming more popular among moviegoers, cinema operators in India have struggled, forcing PVR and Inox to join forces.
In fiscal 2024, PVR INOX intends to open 150-175 new screens. It also recorded an impairment charge of 108.2 million rupees relating to a stalled project in a Bengaluru mall, according to the business. PVR INOX is publishing results for the first time since the merger was completed.
When the two companies were distinct, PVR claimed a loss of 1.05 billion rupees. “While there has been some volatility at the box office over the past few months, we are confident that this trend will settle down over the next two to three quarters,” said PVR INOX.
The quarter’s revenue was 11.43 billion rupees, while total expenses were 13.64 billion. ‘Pathaan,’ a Bollywood smash, was among the few films that brought in customers in the quarter, while Hollywood films such as ‘Ant-man and The Wasp – Quantamania’ and ‘John Wick-4’ had a “decent performance,” according to the business.
Average ticket costs fell to 239 rupees in the quarter, down from 244 rupees the previous quarter, while average food and beverage spend per patron fell to 119 rupees, down from 133 rupees. The company’s stock closed 1.2% higher on Monday, ahead of the report.
