- 16 May 2023
- ICICI Securities
PVR INOX REPORTS WEAK PERFORMANCE
PVRINOX - 973 Change: 18.65 (1.95 %)News: PVR Inox (combined entity) performance was weaker than expected at the operating level. Reported revenue came in at Rs 1143 crore, (up 34% YoY and down 21% QoQ) on proforma basis with box office revenue of Rs 602 crore (up ~21% YoY and down ~18% QoQ on proforma basis). Footfalls (up ~21% YoY, down ~18% QoQ) at 30.5 million and average ticket prices (ATP) at Rs 238 wer up ~3% YoY and flat QoQ. EBITDA (without impact of Ind-AS116) was at Rs 5 crore (our expectation: Rs 40 crore), with margins at 0.5% (lower than 3.5% expected) given the weak box office performance.
Views: We expect multiplexes to face a challenge till there is consistency in content performance. Near term monitorable, thus, is big ticket content performance recovery, which has seen inconsistencies post Covid. For the medium to long term, key trigger will be synergy benefits (management has guided for EBITDA synergy benefit of | 225 crore over 12-24 months)
Impact: Negative