India's largest multiplex operator, PVR Inox, has reported a profit for the latest quarter, marking the third consecutive financial report since the merger of PVR and Inox. The profit of 166 crore for the July-September quarter was driven by the success of Hollywood movies like "Barbie" and "Oppenheimer" and popular Bollywood films, leading to higher theatre attendance. The company also expanded by opening 37 new screens during the quarter, contributing to a 53.3 percent sequential increase in consolidated revenue. The average ticket price and customer spending on food and beverages both increased, offsetting higher expenses. PVR Inox's shares rose in the September quarter.
The largest multiplex operator in the country, PVR Inox, turned a profit in the latest quarterly report. This was driven by the tremendous success of Hollywood movies like "Barbie" and "Oppenheimer," as well as popular Bollywood films, which attracted more customers to their theatres. This marks the third financial report since the merger of PVR and Inox, with a profit of 166 crore reported for the July-September quarter, a significant turnaround from losses in the previous two quarters.
In August, the company attributed its success to strong box office performances in Hindi films like "Gadar 2" and "Rocky aur Rani kii Prem Kahani," along with Tamil movie "Jailer" and "Barbenheimer," which resulted in record-breaking attendance. PVR Inox also expanded by opening 37 new screens during the quarter, increasing theatre occupancy from 22.3 percent to 32.3 percent.
Notably, the average ticket price rose by 12.2 percent to 276 rupees, and customers spent an average of 136 rupees on food and beverages, up from 13 rupees in the previous quarter. These factors contributed to a significant 53.3 percent sequential increase in consolidated revenue, totalling 2,000 crore.
Despite the increased spending on movie exhibitions and food and beverage offerings to accommodate the higher footfall, the company managed to offset these expenses with a 25.3 percent increase in total expenses.
PVR Inox's shares, which had risen by 25 percent in the September quarter following declines in the previous two quarters, experienced a 1.6 percent decline in the session. Analysts like Vivekanand Subbaraman from A Capital noted that the enthusiasm around movies and PVR Inox's results met expectations.
"Barbie" and "Oppenheimer" are two Hollywood movies with distinct genres. "Barbie" is primarily a family-friendly animated film, falling into the genre of animated children's movies. It typically caters to a younger audience, often focusing on themes of friendship, adventure, and life lessons.
On the other hand, "Oppenheimer" is expected to be a biographical drama or historical drama film. This genre tends to explore real-life events and figures, in this case, potentially delving into the life and work of J. Robert Oppenheimer, a key figure in the development of the atomic bomb during World War II. These films often emphasize historical accuracy and character development.
So, while "Barbie" is in the animated children's genre, "Oppenheimer" falls into the biographical or historical drama genre, appealing to different audiences and exploring diverse themes.
This story was earlier published in Business Standard
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