PVR Inox, India’s largest multiplex operator, reported a first-quarter loss that more than doubled last weekend due to fewer big-budget Bollywood releases and weak box office returns from the ones that did.
The company, formed by the merger of PVR and Inox in early 2023, posted a consolidated net loss of Rs1.79 billion ($26 million), compared with a year-ago loss of Rs 816 million.
Movie releases dropped 13 per cent in the quarter, PVR Inox said.
Analysts have said that India’s general elections and the popular Indian Premier League cricket tournament led to Bollywood releasing fewer Hindi movies between April and June.
Moreover, movies that were released, such as Bade Miyan Chote Miyan, Chandu Champion and Maidaan did not fare well at the box office.
“The number of blockbusters also declined sharply this quarter, with only three films crossing the 1 billion rupee-mark, compared to seven last year,” said PVR Inox, which operates 1,754 screens across the country.
This hurt its two largest avenues of revenue – movie ticket sales and food and beverages.
Ticket sales, which account for nearly half of the total revenue, was down 14.5 per cent. Food and beverages sales, which comprises 33 per cent of the total, fell 6.1 per cent.
As a result, PVR Inox’s overall revenue fell almost 9 per cent to Rs11.91 billion.
Hollywood offered no respite either, as the industry saw fewer releases due to delays from a writers’ strike last year.
Hollywood content has been delayed by four to eight months due to the strike, said Karan Taurani, an analyst at Elara Capital.
On June 27, Kalki became the biggest movie of the year, contributing nearly 16 per cent to the quarterly box office in just four days and grossing over Rs1,000 crore globally to date.
“With Kalki’s continued success and a promising line-up ahead across languages, Q2 has begun on a positive note, said PVR Inox’s managing director Ajay Bijli.
“There are no significant events expected in the near future to disrupt the release schedule. Additionally, Hollywood is expected to bounce back, as the effects of the writer and actor strikes are beginning to diminish. We anticipate a significantly improved performance in the remaining three quarters of the current fiscal year.”
In the upcoming months, several big Hindi movies are set for release, including Bad Newz, Stree 2, Vedaa and Auron Main Kahan Dum Tha.
Reuters
