Tuesday, August 16, 2022

PVR manages to outperform INOX in Q1 of FY2023

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  • INOX reported its highest quarterly revenue, EBITDA and net profit ever since its founding two decades ago.
  • EBITDA was at an all-time high as 1.8 crore people visited the cinemas in the last quarter.
  • Interestingly enough, the average ticket price of INOX was 21 lower than that of PVRs.

After a two-year slump, India’s largest multiplex chains PVR and INOX have risen from the ashes to report their best quarters yet, thanks to a number of major movie releases. Blockbuster films such as KGF: Chapter 2, RRR, Bhool Bhulaiya 2, and Doctor Strange forced audiences to return to theaters between April and June.

INOX on Wednesday reported its highest quarterly revenue, EBITDA and net profit ever since its founding two decades ago. PVR, which announced its quarterly results two weeks ago, had also reached the same milestones in the quarter ended June 30. However, PVR managed to surpass INOX in the April-June quarter of 2022 by almost double the turnover.

INOX’s revenue was 589 crore in the April to June 2022 quarter, representing an astronomical 22-fold jump from ₹26 crore in revenue reported a year earlier. The company also managed to turn a net loss of ₹101 crore a year ago into a profit of ₹74 crore for the first quarter of FY2023.

Its EBITDA – earnings before interest, taxes, depreciation and amortization – was also at an all-time high as 1.8 crore people visited the cinemas in the April-June quarter.

April-June (FY2022) January-March (FY2022) April-June (FY2023)
Revenue ₹26 crore 325 crores ₹589 crore
EBITDA -₹104 crores ₹21 crore ₹130 crore
Net profit -₹101 crore -₹12 crores ₹74 crores

Meanwhile, PVR’s revenue exceeded ₹1,000 crore for the first time in the first quarter of fiscal year 2023, an increase of nearly 10-fold from last year. Net profit was 53 crore, compared to a loss of ₹220 crore in the first quarter of FY2021.

In particular, PVR and INOX are in the midst of a merger to create the largest multiplex chain with more than 1,500 screens in India. The deal is still seeking regulatory approvals.

BI India

Interestingly enough, the average ticket price of INOX was 21 lower than that of PVRs. INOX charged an average ticket price (ATP) of 229, while PVR charged ₹250 – the highest for both companies.

Content to their rescue

“Content continued to be the decisive force behind the quarter’s historic performance, with numerous films doing exceptionally well at the Box Office. Q1’FY23 featured blockbusters including RRR, KGF: Chapter 2, Vikram, Bhool Bhulaiya 2 and Doctor Strange In The Multiverse of Madness, resulting in an unprecedented attendance of 18.4 million guests,” INOX said in a statement. declaration.

The company now expects a “big turnaround” in the business in the coming quarter due to releases such as Laal Singh Chaddha, Raksha Bandhan, Liger, Brahmastra and Vikram Vedha. PVR also has similar expectations for the coming months.

Siddharth Jain, the director of INOX Group, noted during the analyst call that attendance numbers to the theaters would not be affected even if one of these films did not perform well.

Four brokerage firms — ICICI Securities/Direct, Motilal Oswal, Prabhudas Lilladher and ShareKhan — also believe that a strong film pipeline could change the fate of cinema chains such as PVR and INOX as they attract more visitors.

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