The Hindu Business Line : IPL kept PVR’s audiences away from theatres in Q1

New Delhi, Aug. 1 The cinema theatre chain PVR’s net profit for the first quarter ending June 31 was down by 35.3 per cent to Rs 3.88 crore compared with Rs 6 crore in the corresponding period in the previous year.

The company lays part of the blame on the successful Indian Premier League which kept audiences in front of television sets on weekends, and the other, on a poor show by films released during this period.

Net sales stood at Rs 60.22 for the quarter, up 10.35 per cent from the corresponding quarter the previous year.

“The first quarter has turned out to be a very lacklustre quarter for the movie industry and cinema exhibition industry.

“The quarter was further impacted on account of the launch of Indian Premier League, a cricket extravaganza, which lasted for a period of 45 days, coinciding with the school and college holidays,” said the company in a release.

Lower occupancies

While last year PVR pointed out big releases such as Spider Man 3, Namaste London and Life in a Metro had been released, the quarter this year was characterised by lower occupancies due to the lack of quality movies, it added.

Overall occupancies fell from 42 per cent to 32 per cent across cinemas during the quarter under review.

The 10 per cent growth in net operating income was led by higher ticket and food and beverage realisation across the circuit and robust growth in advertisement revenues, said the company.

“While the lack of content during the quarter under review has impacted the footfalls during the quarter under review for the entire cinema industry, the long-term visibility of the business remains buoyant,” said Mr Ajay Bijli, Chairman and Managing Director, PVR Ltd.

The leisure and entertainment industry in India has been growing at sustainable rates despite worsening macro economic scenario and content line-up for the forthcoming quarters looks exciting for the exhibition industry, added Mr Bijli.

New multiplexes

During the quarter under review, PVR opened three multiplex properties comprising 17 screens, taking its total screen count to 101 screens.

During the quarter under review, PVR Pictures, a subsidiary of PVR Ltd, secured Private Equity Investment worth Rs 120 crore in total from ICICI Venture and JP Morgan Mauritius Holding Ltd for a 20 per cent stake to each of the investors.

Related Stories:
‘Sports, regional channels lose viewership to IPL’
IPL impact: Zee unscathed; Star and Sony feel the pinch

More Stories on : Financial Performance | Cinema

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