PVR reported 84.43 per cent year-on-year increase in its consolidated net profits to Rs 47.75 crore for the quarter ended March 2019, on the back of an increase in movie exhibition revenues.
Multiplex giant PVR’s Chairman and Managing Director Ajay Bijli has said that around 65 per cent of the company’s overall revenue is contributed by ticket sales while 25-27 per cent comes from food and beverages (F&B).
F&B is now a very critical segment for PVR as it has evolved beyond popcorn and cold drink since the “movie going format is longer and has also got intervals” and “…therefore people have time to eat as well,” Ajay Bijli told ET Now. The contribution from F&B may also increase, Ajay Bijli added.
The company on Friday reported 84.43 per cent year-on-year increase in its consolidated net profits to Rs 47.75 crore for the quarter ended March 2019, on the back of an increase in movie exhibition revenues.
PVR’s operational revenue for Q4 FY19 went up by 43.20 per cent year-on-year to Rs 837.63 crore. Its movie exhibition revenue shot up to Rs 829.66 crore versus Rs 566.81 crore in the same period last year.
With respect to the competition from the over-the-top (OTT) players, Ajay Bijli said that the experience in the two formats is different even as cinema going and OTTs are differentiated in content.
“OTT is long-form story-telling” whereas in cinema “you go, you see a 2.5 hours movie, 2 hours movie and you are out,” said Ajay Bijli. Hence, “I think both (OTT and cinema) are fine, both will coexist,” he added.
PVR will continue to focus on the India market as the market is still highly under-screened. PVR will be looking to set up around a 1,000-screens in the coming four years, according to Ajay Bijli.
Globally, While China and the US are far ahead of India but it has got a huge scope for improvement. PVR has around 771 screens operational in India out of which luxury screens would currently be around 10-15 per cent, he added.
PVR’s EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 66 per cent to Rs 169 crore in Q4 FY19.