PVR sees strong Q3FY20: Thanks to strong Hollywood, Bollywood content
Contribution of regional content fell from 34 percent to 23 percent year-on-year on account of poor performance of Tamil and Telugu content.
The film exhibition business continues to show strong growth in business with one of the top multiplex players PVR posting strong results during the December quarter.
PVR in the third quarter FY20 recorded consolidated revenues at Rs 924 crore as compared to Rs 857 crore during the corresponding period in 2018, witnessing a growth of eight percent.
However, the revenue has dropped from Q2FY20 which so far has turned out to the best quarter for PVR during the financial year FY19-20 with revenues at Rs 979 crore.
Talking to Moneycontrol, Nitin Sood, CFO - PVR, said that, while Q2 was clearly one of the best quarters with 2.93 lakh admissions, the company saw 2.58 lakh admissions in the third quarter. Lower admissions are the primary reason for the drop in revenues compared to Q2.
The box office performance growth was muted in the third quarter which is considered as the most lucrative period for the film business with more holidays and festivals falling during this time.
“The regional content did not do well. The southern film industry --- Tamil and Telugu did not do so well that was one of the reasons,” he said.
The contribution of regional content fell from 34 percent to 23 percent year-on-year (YoY) on account of poor performance of Tamil and Telugu content.
While the box office performance has been satisfactory with strong performance from Bollywood and Hollywood film industry, the performance of regional film industry, specifically Tamil and Telugu has been below par in the current quarter resulting in muted growth in our overall box office revenues, added Ajay Bijli, Chairman and Managing Director, PVR Ltd.
The box office revenues for the third quarter were up by six percent from Rs 425 crore to Rs 453 crore.
Top grosser in Q3FY19-20 was War with 26 lakh admits and Rs 52.56 crore net box office collection (NBOC), followed by Housefull 4 with 18 lakh admits and 34.39 crore NBOC, Bala with 14 lakh admits and 31.71 crore NBOC, Joker with 17 lakh admits and Rs 26.45 crore NBOC, and Good Newwz with 10 lakh admits and Rs 24.15 crore NBOC.
Despite lower admissions, PVR managed growth in both food and beverage and advertising revenue segments.