As theatre business gradually returns, multiscreen operators too seem to have created a plan to bounce back. INOX Leisure Limited plans to launch 77 screens this fiscal across the country. It is currently present in 73 cities with 163 multiplexes and 692 screens, “In FY22, we opened the maximum number of screens in the industry, despite the pandemic. Of the 77 screens, which we plan to open, we have already started three properties with 17 screens. We also have a strong pipeline of 14 more screens pan-India in FY24,” Alok Tandon, chief executive officer, INOX Leisure Limited, told BrandWagon Online. As per the data from its earnings calls, the company clocked footfall of 110 lakh in Q4, 2022, on the back of an average ticket price (ATP) of Rs 218.
The company, which completed 20 years of operations in India on May 11, 2022, has rolled out new initiatives to boost its revenue. For instance, beyond the regular offerings of popcorn and beverages, the company has started to offer desi meals such as Rajma Chawal and Chana Chawal to their customers. For Tandon, desi meals have been received well by the audience and have seen a rise in demand. Furthermore, the company has partnered with food delivery apps such as Swiggy and Zomato for home food delivery. Interestingly, INOX has also tied-up with restaurant reservation platform EazyDiner. People can book tables and chairs at INOX premises and eat food without buying a ticket for a movie. “Food and beverage (F&B) are given top priority in our company. We feel that food has been one of the integral verticals of the cinema business. F&B is a very dynamic space and we continue to bring in innovations to keep our customers engaged,” Tandon elaborated.
INOX claims to have seen a rise in revenue share from F&B segment last fiscal. As per the company, F&B used to account for nearly 20-25% of revenue. In FY22, the segment accounts for nearly 27% of revenue. While it earned 59% of its revenue from the sale of tickets, advertisements and other revenue accounted for nine percent and five percent, respectively.
While the exhibition industry has been one of the worst affected businesses by the pandemic, the company claims that the sector has revived. As per INOX’s earnings call shared with BrandWagon Online, the company has posted a 377% increase in revenue to Rs 706 crore in FY22 when compared to Rs 148 crore in FY21. Similarly, the company’s net loss narrowed 36% to Rs 167 crore in FY22. “Good pipeline of movies and control of cost control contributed to the contraction of our loss and our rise in revenue. Valimai, Gangubai Kathiawadi, The Kashmir Files, RRR, KGF 2 helped us rebound our revenue in Q4,” Tandon said.
Furthermore, INOX Leisure recently forayed into the merchandising segment. The multiplex player has created three categories of products – Hollywood films, generic INOX products and cricketing merchandise. It will feature heroes from Disney, Marvel, Lucas Films, Warner Bros (DC Comics), Universal, and also have products of the Indian cricket team and Indian Premier League (IPL) through FanCode and MPL, respectively. Designed exclusively by Macmerise, the exhibition company is offering an array of official and licensed merchandise in various categories including mobile and electronic accessories, fashion apparel, games and stationeries, consumer electronics, and home and kitchen.