PVR INOX To Shut 50 Loss-Making Cinemas Over Next 6 Months

Multiplex operator PVR INOX Ltd reported a quarterly loss of 3.33 billion rupees ($40.72 million) on Monday, hit by one-time impairment charges and expenses related to the planned shutdowns of some cinemas.

The company, formed by the merger of India's top two multiplex operators earlier this year, said it took an accelerated depreciation charge of 105.8 million rupees on 50 loss-making cinemas it plans to shut down over the next six months.

Cinema operators in India have been struggling ever since the pandemic, when a lockdown forced people home and made streaming more popular among movie enthusiasts, prompting PVR and Inox to join forces.

PVR INOX plans to open 150-175 more screens in fiscal 2024.

It also took an impairment charge of 108.2 million rupees related to a project in a Bengaluru mall which was suspended, the company said. PVR INOX is reporting results for the first time after the completion of the merger.

PVR had reported a loss of 1.05 billion rupees a year earlier, when the two companies were separate.

"While there has been some volatility at the box office over the past few months, we are confident that this trend will settle down over the next two to three quarters," PVR INOX said.

Revenue for the quarter stood at 11.43 billion rupees, while total expenses were at 13.64 billion.

Bollywood hit 'Pathaan' was among the few films that brought in customers in the quarter, while Hollywood films like 'Ant-man and The Wasp - Quantamania' and 'John Wick-4' had a "decent performance", the company said.

Average ticket prices in the quarter decreased to 239 rupees from 244 rupees in the previous quarter, while the average food and beverage spend per patron was 119 rupees, down from 133 rupees.

Shares of the company closed 1.2% higher on Monday ahead of the results.

In a statement to NDTV, Ajay Bijli, MD of PVR-INOX, said, ''I would like to reiterate that we are extremely optimistic about the business and continue to invest heavily in adding more screens. To further clarify, during FY23, PVR & INOX opened 168 new screens in 30 cinemas across the country with an investment of more than Rs 800 crore and during the current financial year, plan to add 150-175 more screens with an approximate investment of Rs 700 crore.''

''On the human side, PVR INOX employs over 20,000 people and this headcount grows at a minimum of 10% every year on account of new screen additions,'' he said.

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