PVR INOX Limited’s total revenue for Q4, FY24 grew by 10% to Rs 1290.4 crore from Rs 1164.7 crore in Q4, FY23 while the net loss for the quarter narrowed by 68.46% to Rs 90.1 crore in Q4, FY24. Additionally, the company recorded a total revenue of Rs 6203.7 crore in FY24, growing by 62.44% from Rs 3819 crore in the corresponding year. The company recorded a net profit in FY24 of Rs 114.3 crore after recording a loss of Rs 242.9 crore in FY23.
The company stated that the average ticket price was Rs 233 while the average food and beverages spend was Rs 129 in the quarter ended December 2023. According to the official communique, the company opened 33 new screens across six properties in Q4, FY24. The company witnessed a negative growth of two percent in average ticket price while witnessing a growth of eight percent in food and beverages spend.
Additionally, the company recorded 32.6 million admissions, growing by seven percent. Meanwhile, during the year the company recorded 151.4 million admissions, growing 59% year-on-year with average ticket price of Rs 259 and food and beverage spend of Rs 132.
The company stated that volatility was observed in the box office collections during the year. Quarter ended March 2024 was the weakest quarter of the year. While the India box office in January started off on a decent note with Fighter (Hindi) grossing Rs 255 crore, Hanuman (Telugu) grossing Rs 238 crore, and month of March saw releases like Shaitaan (Hindi) grossing Rs 176 crore which performed well at the box office, the overall quarter was muted with admissions of 3.26 crore.
The company in its official communique has stated that the ongoing general elctions has imapcted the flow of new releases in the current quarter and expects the flow to stabilise by mid-June.
“The key strategic priorities as envisaged above, should help the company in charting a new, less capital intensive and incrementally profitable growth path. Our endeavour is to redefine our growth strategy, focus on fixed cost reduction thus improving profitability resulting in enhanced return on capital and free cash flow generation,” Ajay Bijli, managing director, PVR Inox, said.
The company highlighted that it has identified four key strategic priorities, acting as guiding posts for its growth strategy from a medium to long term perspective. Firstly, the company would look to improve its profitability of the existing circuit through revenue enhancement by driving box office initiatives like Movie Passport, Cinema lovers day, screening of alternate content like film festivals, live concerts, key sporting and other events. Secondly, it would focus on reducing costs by renegotiating rentals for operational cinemas, shutting down underperforming cinemas, reducing overhead costs and having a leaner organisational structure. Thirdly, the company intends to adopt a capital light model wherein it would reduce its annual capital expenditure by exploring alternate models like FOCO (Franchisee owned, Company operated), partnering with developers for jointly investing in new screen capex. Fourth priority would be to become net debt free over the next few years.
There is a slew of anticipated releases like Bhool Bhulaiya 3, Sitaare Zameen Par, Pushpa 2, Indian 2, Despicable Me 4, Deadpool and Wolverine, and Joker Folie a Duex, among others.