PVR reported a strong set of second quarter earnings. The year-on-year revenues in the quarter were up 37.3 percent and net profit was up 35 percent. EBITDA margins came in at 32.7 percent versus 17.5 percent for the same quarter last fiscal.

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Discussing the performance and outlook in detail, Nitin Sood, CFO, PVR said the company had a fantastic box office year so far, while Q2 was exceptional and the performance of movies was very good. The current quarter also looks good.

“We are looking ahead for a good H2 as well on back of a good H1,” said Sood in an interview with CNBC-TV18.

He said in the first half of the year operating margins were robust and this quarter EBITDA margins adjusted for IND AS 116 is upwards of 20 percent, which are one of the best-ever margins for the company.

With regards to movie pipeline, he said, “We have started with a fantastic opening in October with WAR and we have big films like Housefull 2 coming up in Diwali followed by releases in November, which include Frozen 2, then Dabaang 3 in December and other big films, so the movie pipeline is very strong.”

Strong footfalls

“We haven’t seen any impact of consumption slowdown on movie going behaviour at all, which is reflected in strong footfalls at cinemas and strong spending on F&B,” he said.

“The average occupancy in Q2 was 36.5 percent. The overall footfall additions are up 25 percent this quarter including the SPI cinema circuit we bought last year. So strong growth in footfall. We did about 2.93 crore admissions this quarter,” said Sood.

With regards to advertising revenues, he said, “while the general environment has been challenging, our team has managed strong growth of 16 percent on ad revenue front this quarter. We have managed to sustain ad revenue growth with partnerships with long-term advertising clients.”

He confirmed that promoters have not sold any shares, adding that “we just did merger of SPI Cinemas. So the erstwhile promoters of SPI Cinemas held 29 percent equity in SPI and on merger with the company, they got shares of PVR. So all the shareholders of PVR where diluted by about 3.2 percent and that is the reason for reduction for promoter holding".

First Published:Oct 17, 2019 8:57 PM IST