PVR Inox reports Q2 FY25 net loss as revenue falls 19%

PVR Inox has announced its financial results for the quarter ending September 30, 2024, revealing a consolidated net loss of Rs 12 crore, a stark contrast to the net profit of Rs 166 crore reported in the same period last year. This downturn highlights the challenges faced by the multiplex operator in a competitive and fluctuating market.

The company's revenue for the quarter fell by 19% to Rs 1,622 crore, down from Rs 2,000 crore in Q2 FY24. Revenue from operations was estimated to decline to Rs1,535.4 crore, with the company having reported Rs 1,190.7 crore in the preceding quarter.

PVR Inox's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a significant decrease, falling to Rs 479 crore in Q2 FY25 compared to Rs 700 crore in the same quarter last year. The EBITDA margin contracted to 29.55%, down from 35.34% in the year-ago period, reflecting the pressures on profitability amidst declining revenues.

Despite the overall box office being estimated to decline by 19.7% year-on-year to Rs 2,630 crore, several films, including Stree 2, The Greatest of All Time (GOAT), Devara (Part 1), and Deadpool & Wolverine, managed to surpass the Rs 100 crore mark at the box office. Notably, Stree 2's exceptional performance contributed significantly to the box office, accounting for more than half of August's total gross of Rs 1,291 crore, marking it as the best month in 2024 for the Indian box office.

Footfalls in PVR Inox cinemas increased sequentially to 3.88 crore from 3.04 crore in Q1 FY25, although this figure represents a 19.9% decline compared to 4.84 crore in the same quarter last year. The average ticket price (ATP) also saw a decrease of 6.7%, falling to Rs 257 from Rs 276 during the same period last year, while the spend per head remained stable at Rs 136.

As PVR Inox navigates these challenging market conditions, the focus will likely shift towards enhancing the cinematic experience and leveraging successful film releases to drive attendance and revenue in the upcoming quarters.

Commenting on the results and performance, Ajay Bijli, managing director, PVR INOX, said, "The performance in this quarter, highlights the enduring appeal of cinema and the power of compelling content. Our strategy of combining fresh blockbusters with nostalgic re-releases has resonated strongly with audiences, reinforcing our position as a leader in the multiplex industry.”