PVR INOX Ltd, a multiplex operator, on Monday announced a quarterly loss of 3.33 billion rupees ($40.72 million), hurt by one-time impairment charges and costs associated with the anticipated closure of some theatres.
A brief about within the Next Six Months, PVR INOX Will Close 50 Loss-Making Theatres
The firm said it incurred an accelerated depreciation charge of 105.8 million rupees on 50 loss-making cinemas it wants to close over the next six months. The company was founded earlier this year by the merging of India’s top two multiplex operators.
Since the pandemic, when a lockdown caused people to stay at home and made streaming more popular among movie fans, cinema owners in India have struggled. This is what led PVR and Inox to team up.
PVR INOX Ltd, a multiplex operator, on Monday announced a quarterly loss of 3.33 billion rupees ($40.72 million), hurt by one-time impairment charges and costs associated with the anticipated closure of some theatres. The firm said it incurred an accelerated depreciation charge of 105.8 million rupees on 50 loss-making cinemas it wants to close over the next six months. The company was founded earlier this year by the merging of India’s top two multiplex operators.
Since the pandemic, when a lockdown caused people to stay at home and made streaming more popular among movie fans, cinema owners in India have struggled. This is what led PVR and Inox to team up.
Hollywood movies like “Ant-man and The Wasp – Quantamania” and “John Wick 4” had a “decent performance,” according to the business, but Bollywood smash “Pathaan” was one of the few movies that attracted viewers in the quarter.
The average cost of a ticket in the quarter dropped from 244 to 239 rupees, while the average cost of food and beverages per customer dropped from 133 to 119 rupees.
In advance of the findings, the company’s shares ended the day Monday 1.2% higher.
Ajay Bijli, MD of PVR-INOX, made the following comment in a statement to NDTV: “I would want to stress that we are highly positive about the company and continue to spend aggressively in adding more screens. To be more specific, PVR & INOX opened 168 additional screens in 30 theatres throughout the nation during FY23 with an investment of more than 800 crore, and they want to add 150-175 more screens this fiscal year with a projected investment of 700 crore.
On the human side, PVR INOX employs around 20,000 individuals, and due to the addition of new screens, this workforce increases by at least 10% annually, he claimed.
