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- 19 Jan 2023
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PVR REPORTS HEALTHY RECOVERY; CONTENT PERFORMANCE KEY AHEAD
PVRINOX - 1002 Change: 30.05 (3.09 %)PVR Ltd – Q3FY23 First Cut
(CMP - Rs 1678, Market Cap - Rs 10256 crore)
Q3FY23 Earnings Summary
Reported revenue came in at Rs 940.7 crore, (up 37% QoQ) and ~3% higher than pre-Covid levels in 32FY20. PVR reported box office revenue of Rs 436 crore (up ~33% QoQ) with footfalls up ~22% QoQ at 22 million and ATP at Rs 244 was up ~9% QoQ owing content performance and movie slate mix. The ad revenues stood at Rs 79.2 crore, at ~65% of pre Covid levels. The company reported Rs 288 crore of F&B revenues, up 25% QoQ, with SPH at Rs 133 was up 3% QoQ
EBITDA (without impact of Ind AS116) was at Rs 128.3 crore (our expectations Rs 116 crore), with margins at 13.6% (tad higher than 13% expected) given the box office performance and higher distribution revenues. On reported basis, EBITDA was at Rs 288.8 crore (margin of 30.7%)
Consequently, the reported PAT was Rs 16.2 crore. The company reported PAT (without impact of Ind AS116) at Rs 25.2 crore
View: Near term monitorable is big ticket content performance, which has seen inconsistencies in performance, post Covid. For the medium to long term, key trigger will be merger (likely to be consummated within a month) post which the MergedCo will benefit from faster growth trajectory (the management is looking to add 200+ screens every year and ~2000 screens over the next seven years). Key synergy, in our view, will be bargaining power across the value chain, given the scale boosting the revenues across segments such as advertisements and distribution. We will come out with an update soon.
Impact: Neutral