Leading multiplex operator PVR Pictures is now known as PVR INOX Pictures following a merger between PVR and Inox Leisure.
Coming months
It plans to shut down 50 cinema screens over the next six months as the properties are loss-making or housed in malls, which have reached the end of their life cycle with little hope of any revival, the company said on Monday.
“These properties are loss making, or housed in malls which have reached the end of their life cycle with little hope of any revival.
The company has taken an accelerated charge of the depreciation in its books and written off the Written-Down Value of assets,” said the firm in an investor update presentation.
Surprise merger
The development comes days after the multiplex chain operator announced that it will shut down some of the cinema screens due to accelerated depreciation on cinemas proposed to be shut down.
The two erstwhile rivals announced their surprise merger in March 2022, after the pandemic led to extended lockdowns of cinema screens and rise of video OTT platforms. They officially merged on February 6, 2023.
Gautam Dutta, who was PVR CEO, and Alok Tandon, who was INOX Leisure CEO, have been made co-CEOs of the merged entity.
Operationally, the former will look after North and South, and the latter West, East, and Central.
Present operations
As a merged entity, PVR Pictures and Inox Leisure both are operating 361 cinemas with 1,689 screens across 115 cities till the end of FY23 in India and Sri Lanka.
In the previous fiscal year, PVR and INOX launched 168 new screens in 30 cinemas, and the firm plans to open 150-175 more screens in FY24, according to the post-Q4 results press release.
“Most of these screens are in different stages of fit-out. The company as a strategy has also realigned all upcoming handovers of new sites for fitouts to next calendar year till the time there is strong recovery in box office.”
PVR Pictures was the film production and distribution arm of PVR Group.
Content for Indian market
PVR INOX Pictures intends to increase investments in content acquisition for the Indian market.
Ajay Bijli, Managing Director, PVR INO, “The year gone by marks the 1st full year of uninhibited operations for the exhibition industry.
There was considerable volatility in box office quarter on quarter.
We believe that the two major factors that marred the industry in FY23 – underperformance of Hindi films and less number of Hollywood releases, will both ease out in FY24.”
Opportunities for under-represented creators
He added that the recently culminated merger with INOX will act as a key milestone for the company and the Indian film industry as a whole.
Through the merger it wants to open up further opportunities for under-represented storytellers and independent creators.
Venture into film production
“With a wider screen network, it will expand its programming and marketing capabilities and create highly innovative experiences, bringing significant value to its partners as well as to its customers,” it said.
The company made a successful film production debut in 2007 with Taare Zameen Par and Jaane Tu Ya Jaane Na.
Financials
PVR Inox’s share price hit a fresh 52-week low on Tuesday after its Q4 numbers for FY23. Overall, the stock dipped by more than 4%.
In Q4FY23, PVR’s net loss widened to ₹334 crore versus a loss of ₹105.5 crore in Q4FY22.
Revenue stood at ₹1,164.9 crore in Q4FY23 as against ₹578.7 crore in Q4FY22.
EBITDA came in at ₹285.6 crore compared to ₹142.3 crore in Q4 of FY22.
