PVR records highest revenue and profitability in Q1 FY23

Multiplex operator PVR reported strong recovery in box office business, food and beverage revenue in Q1 FY23, after facing a severe impact on business due to the pandemic in the last two years.

The April-May-June period saw the best-ever quarterly performance across all parameters in Q1 FY23, the company said.

"This is the highest ever quarter for PVR which is even bigger than pre-pandemic. We have never done Rs 1,000 crore quarterly revenue or Rs 208 crore quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). It is the highest quarter, both in terms of revenue and profitability," Nitin Sood, CFO, PVR Limited said.

Compared to pre-COVID levels, the company in Q1 FY20 had reported total income of Rs 887.2 crore, at an EBITDA of Rs 165.5 crore.

In terms of profitability, PVR reported profit after tax (PAT) of Rs 68.3 crore in Q1 FY23, compared to Rs 44.2 crore in Q1 FY20.

PVR's net box office stood at Rs 530 crore for the quarter ended June, 2022, compared to Rs 456.6 crore reported in Q1 FY20.

However, Sood said they did not reach pre-COVID numbers with the multiplex recording 2.5 crore admits in Q1 FY23 as against 2.7 crore in Q1 FY20.

"There is a large segment of consumers who go to cinemas once or twice a year. This consumer has to come back. It will take a few months in terms of full recovery. But globally, India has been the best performing market in terms of theatre admissions. We are at 90 percent levels of pre-COVID compared to global markets which are at 50-60 percent levels," said Sood.

The company said that it will take more films to bring more people back to cinemas. "In December, when you have a big run-up of films, the recovery in terms of footfalls will be strong," he added.

Analysts tracking the exhibition sector have pointed out that high ticket prices in multiplexes is one reason for low footfalls. However, Sood said that average ticket price (ATP) is not impacting admissions.

PVR saw 23 percent growth in ATP at Rs 250 in the quarter ended June, 2022, compared to Rs 203 in Q1 FY20.

"With the kind of line-up we have, ATP will be sustained over what we have managed to achieve," the CFO said.

The company said it has recorded the highest ever ATP for the quarter on the back of global and local tentpoles that resonated with the Indian audience.