Tuesday, September 26, 2023

PVR reports net loss of ₹71.23 crore in Q2, attributes it to Bollywood, Hollywood flops

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  • PVR admissions and ticket prices were impacted by the weak performance of Bollywood and Hollywood movies, the company claims.
  • Hollywood movie box office collections for PVR also declined 47% in Q2 FY23.
  • The box office contribution of regional films to PVR rose to 44% in the second quarter.

The bland performance of Bollywood and Hollywood movies has pushed multiplex chain operator PVR into the red as it reported a net loss of ₹71.23 crore for the second quarter. However, the losses fell by half compared to the net loss of ₹152.39 crore it recorded in the same quarter last year, when there were still many lockdowns.

Operating income rose five times to 686 crore for this July-September quarter from ₹120 crore in the second quarter of last year.

“Admissions and average ticket price during the quarter were impacted by the weak performance of Bollywood and Hollywood films,” the company said in a statement to exchanges.

Content is key, not star presence, says PVR
PVR attributed the losses to the continued underperformance of Bollywood films.

With the exception of Brahmastra Part One: Shiva, most of the other big budget Bollywood movies underperformed such as Laal Singh Chaddha, Raksha Bandhan and Liger, according to PVR.

PVR said movies no longer grab viewers’ attention due to the presence of stars as content has become key.

“The underperformance of Hindi films can be attributed to various factors, such as films conceived before and during the pandemic that do not fit well with current consumer tastes, the quality of the content that drives performance compared to the presence of stars and negative social media towards certain Bollywood movies and stars,” the company said.

Even for Hollywood, this was a weak quarter in nearly two decades, both in terms of the number of movies released and their box office collections.

Hollywood movie box office collections for PVR were down 47% in Q2 FY23 compared to Q2 FY20.

Regional film industry continues to outperform
The regional industry is the outlier as these films continue their robust performance.

“For PVR, the box office contribution of regional films increased from 28% in Q2 FY20 to 44% in Q2 FY23. Movies like Sita Ramam, Kartikeya 2, Thiruchitrambalam, Rocketry and Vikrant Rona performed well in the quarter ending September 2022.

PVR opened 14 screens in three movie theaters in the past quarter and is ramping up its plan to open a total of 110-125 new screens by the end of the current fiscal year.

“We remain focused on bringing filming back to our cinemas. I am confident that the business will make a full recovery thanks to this year’s robust content lineup and the various initiatives we are implementing to bring the cinema habit among our loyal customers.” customers,” said Ajay Bijli, Chairman and MD, PVR.

The company expects the National Company Law Tribunal (NCLT) process for PVR’s merger with INOX Leisure to be completed within the next 3-4 months.

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