Multiplex operator PVR is aiming to double its revenue to around Rs 4,000 crore and screen count to 1,000 across the country in next five years.
Multiplex operator PVR is aiming to double its revenue to around Rs 4,000 crore and screen count to 1,000 across the country in next five years. “Our strategy is to increase screen penetration in India. We are about 570 screens andin next four to five years we would double screen count and cross 1,000 screen,” PVR Chief Financial Officer Nitin Sood told PTI. He further added: “Once we get to 1,000 screens, our revenue would be around Rs 3,500 crore to Rs 4,500 crore.”
In FY 2015-16, PVR had a revenue of Rs 1,743.98 crore and this fiscal it would be around Rs 2,100 crore, Sood added.
With the increase in the number of screens, he said in the next three years “people watching movies at our theatres will rise to 100 million from 75 million today”. As the company grows, Sood said it would be a challenge to bring more variety to entertain millions of customers on a daily basis.
“How do we complement more entertainment for the customers and how do we offer more variety under food and beverages (F&B)? Can we bring more merchandising and add more advertising revenue stream? That would be the two pillars of our strategy,” he added. As per its strategy, PVR would continue to grow in the existing Tier I and II cities and also go to Tier III and IV regions.
“Today we are in 50 odd cities and our aim would be over the next five years to expand to 90 to 100 cities as we expand to 1,000 screen portfolio,” Sood said. PVR, which acquired DT Cinemas last year, would pursue both organic as well as inorganic growth opportunities as the sector is witnessing consolidation, the CFO said.
“The bulk of growth would come from organic growth only as inorganic consolidation possibilities are very small, which are left right now. However, if there is something available on the way from inorganic prospective, we would look on it,” Sood said. Moreover, the company is also expecting that ratio of revenue from food and beverages (F&B) would increase from 26 per cent to 30 per cent 4-5 years. “Today a customers spends 40 per cent of its ticket price on F&B and our aim would be 5 years, it should go up to 50 per cent,” he said.