PVR reports weak performance on expected linesPVRINOX - 1743 Change: 10.85 (0.63 %)
PVR, on expected lines, reported a weak performance given the underperformance of Bollywood content. PVR reported box office revenue of Rs 326.8 crore (down 38% QoQ) with footfalls down ~28% QoQ at 18 million and ATP at Rs 220, up ~10% QoQ owing to promotional discounts during the quarter and content performance. Ad revenues were at Rs 57.2 crore, down 9% QoQ and at ~61% of pre-Covid levels. The company reported Rs 230.3 crore of F&B revenues, down 29% QoQ, with SPH at Rs 134, down 4% QoQ. EBITDA loss (without impact of Ind-AS116) was at Rs 9 crore (our expectations Rs 13 crore loss) given the tepid box office performance.
While performance in Q2 was weak, near term monitorable is content performance in Q3 amid 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 and synergy benefits of revenues (ad, distribution) and costs.