- 20 Oct 2022
- ICICIdirect Research
INOX' WEAK BOX OFFICE PERFORMANCE LEADS TO WASHOUT QUARTER
INOXLEISUR - 501 Change: -3.00 (-0.60 %)News:
Inox reported box office revenue of Rs 209 crore (down ~41% QoQ) with footfalls down ~37% QoQ at 11.6 million and ATP at Rs 215 was down ~6% QoQ owing to promotional discounts during the quarter and content performance. The ad revenues stood at Rs 26 crore, down 13% QoQ and at ~65% of pre covid levels. The company reported Rs 110 crore of F&B revenues, down 33% QoQ with weak offtake of F&B due to low footfall. EBITDA loss (without impact of Ind AS116) was at Rs 3 crore, given the tepid box office performance.
View:
Inox remains the only debt free multiplex chain. While Q2 was a washout quarter, Near term monitorable is content performance in Q3 in a festive quarter, given the strong slate of releases. For the medium term, key trigger will be merger 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.
Impact:
Negative.