pVR Capital Cycle: PVR Restarts Capital Cycle, Plans to Open 125 Rooms in FY23

Leading multiplex network operator PVR expects the film screening industry to recover “dynamically” in fiscal year 23 and plans to open up to 125 screens during the year, the highest in a year. According to the company’s latest annual report, PVR, which is merging with a competitor, expects the process to be completed this fiscal year.

Under the terms of the merger, its chairman and managing director, Ajay Bijli, will be the managing director, while joint managing director Sanjeev Kumar will be respectively the chief executive of the combined company. PVR INOX for a period of five years.

“Overall, business is expected to grow in the coming quarters, supported by the growth in ATP (average ticket price) and SPH (spending per capita) already seen in Q3 and Q4 FY 2021-2022, as well as occupancy rates, back to pre-COVID highs at the end of a stellar lineup of content, with ad revenue returning to pre-pandemic levels over the next few months,” the 2021-2022 annual report says.

PVR has already expanded its operations significantly as audiences have returned to theaters since the third wave of COVID-19.

The company is restarting capital investments cycle from FY2022-2023 and plans to open (about) 125 rooms this year, breaking its own record of opening 87 rooms per year in FY2019-20. In the 2021-2022 financial year, the company opened 29 halls in 5 properties,” the report says.

In their address to shareholders, PVR Chairman and Managing Director Ajay Bijli and Joint Managing Director Sanjeev Kumar said, “We were confident that the theatrical exhibition industry, which has faced countless challenges in the past, will recover dynamically in FY23.”

Calling the last two years affected by the pandemic “the most difficult period for our business,” Biyli said audiences are now demanding to return to cinemas.

Domestic releases such as RRR in March 2022 and KGF 2 in April 2022 have grossed over Rs 1,100 crore and Rs 1,200 crore respectively in the global box office. “And with a great lineup of content that we have before the end of this year, we hope that momentum continues,” they said.

Sharing an update on the PVR scheme to merge all the shares of rival INOX, they said they are currently in the process of obtaining these approvals and hope to complete this merger in the current financial year.

According to the agreement,

there will be a merger with PVR at a share exchange ratio of 3 PVR shares for every 10 INOX shares.

The combined organization will be called OOO PVR INOX while retaining the branding of existing screens as PVR and INOX respectively. The new cinemas opened after the merger will be called PVR INOX, the two companies announced on March 27.

According to them, the merger will “bring together two of India’s best film brands” to provide an unparalleled consumer experience with a network of approximately 1,550 screens as of today.

This merger will bode well for the growth of the film industry in India and will also create tremendous value for all stakeholders including clients, developers, content producers, technology service providers, government treasury and above all employees. .

“By firmly countering the adversity caused by the emergence of various OTT platforms and the impact of the pandemic, the combined company will also work to bring world-class film production closer to consumers in Tier 2 and Tier 3 markets,” they said. .

For the fiscal year ended March 31, 2022, PVR reported revenue of Rs 1,409 crore. The PVR box office was Rs 670 crore and the average ticket price was Rs 235 crore. The total number of applicants was 3.3 crores.

PVR CEO Gautam Datta said business in fiscal year 22 in January and February was impacted by a lack of new content and capacity constraints. However, due to the low severity of the micron variant, state governments refrained from completely shutting down theaters, and producers rushed to announce new release dates.

“The resilience shown by the company over the past 2 years and the rapid pace of recovery in reception after new content became available further solidified our belief in the strength of the PVR brand. We are very optimistic about the prospects of the case and firmly believe that the best is yet to come,” he said.

In FY22, PVR has taken important initiatives in its business, such as alternative forms of content in its theaters.