PVR net profit up 79% in Q1, non-movie exhibition business shrinks

The country’s largest multiplex chain operator PVR Ltd reported a 79 per cent increase in consolidated net profit on a year-on-year basis to Rs 13.6 crore for the quarter ended June 30, 2013. Consolidated revenues almost doubled to Rs 334 crore in the quarter, primarily boosted by inclusion of financials of Cinemax India in which it acquired a majority stake a few months ago.

While overall revenue was boosted by the Cinemax deal, the firm reported stronger bottom-line performance at a standalone level with profit after tax at Rs 16.23 crore on net revenues of Rs 208 crore.

Consolidated EBITDA for the quarter was Rs 61.4 crore against Rs 34.6 crore in the same period last year, up 78 per cent.

Ajay Bijli, chairman and managing director, PVR Ltd, said, “The integration of PVR and Cinemax at the operating level is progressing well and the management is focusing on driving synergies from the combined scale of operations which is reflecting in the market share and the reported results.”

The movie exhibition business in the quarter under review showed growth on the back of strong theatre growth and addition of new multiplex properties and Cinemax multiplex circuit (post acquisition in January 2013).

During the quarter, the company recorded 15.2 million footfalls in its cinemas, up 17 per cent compared with the corresponding quarter a year ago. The average ticket price across the cinema circuit also grew 10 per cent on back of content and flexible pricing launched by the company in various markets. Overall revenue from movie exhibition more than doubled to Rs 313 crore with margin expansion as segment profit from the business unit rose around three times over Q1 of FY13.

The movie production and distribution business, which contributed to around 13 per cent of the business with revenues of Rs 23 crore in Q1 FY13, shrank to Rs 6.3 crore last quarter. It also declined significantly over the previous quarter ended March 31, 2013. The business unit also recorded segment losses during the quarter.

However, overall the non-movie-exhibition business, which generated revenues of Rs 32.4 crore in Q1 FY13, declined to Rs 25.2 crore in the last quarter.

The company’s other business, which comprises bowling, gaming and food and beverages, saw revenues double to Rs 18.9 crore.

The firm plans to add 85-90 screens in FY14. During the quarter, PVR added five properties with 35 screens across Kochi, Mumbai, Bangalore, Chandigarh and Delhi. On a combined basis, PVR and Cinemax have a network of 383 screens spread over 89 properties in 35 cities across the country.

(Edited by Joby Puthuparampil Johnson)

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