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India's PVR INOX Posts Q1 Profit on Strong Ticket Sales

July 23 (Reuters) - Indian multiplex operator PVR INOX on Thursday posted a first-quarter profit, helped by strong demand for films across ​languages, higher ticket prices and increased spending on food ‌and beverages.

Here are the details:

  • The company reported a consolidated net profit of 565 million rupees ($5.85 million) in the quarter ended June 30, ​compared with a net loss of 545 million rupees ​a year earlier.

  • Revenue from operations in the first quarter ⁠rose 11.9% year-on-year to 16.22 billion rupees

  • Revenue growth was ​driven by a 15.9% year-on-year increase in ticket sales to ​8.37 billion rupees and a 16.7% rise in food and beverage sales to 5.58 billion rupees

  • Shares of the company rose as much as 2.72% and ​were up 1.65% as of 1:11 p.m. IST

  • Brokerages had ​expected a stronger quarter for multiplex operators, helped by a steady flow ‌of ⁠movie releases, higher ticket prices and increased spending on food and beverages despite the absence of a major blockbuster

  • The company said India's box office collections grew 20% during the quarter, ​driven by strong ​performances from ⁠Hindi, regional and Hollywood films across both metro and smaller cities

  • Brokerage Prabhudas Lilladher had said that ​spillover collections from earlier releases and a ​healthy flow ⁠of new films were expected to support footfalls during the quarter

  • "The industry delivered broad-based growth, our operating metrics improved across ⁠the board, ​and the company is now net ​cash positive," Managing Director Ajay Bijli said in a press release

($1 = 96.5425 Indian ​rupees)

Reporting by Surbhi Misra in Bengaluru; Editing by Nivedita Bhattacharjee

Source: Reuters


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