pvr: PVR raises ticket prices up to 23%, CEO says

India’s largest multiplex network, PVRraised ticket price up 23% due to inflation, labor costs and refurbishment costs, which helped the company post its best quarterly earnings ever to break the Rs 1,000 crore threshold, CEO Gautam Datta ET said.

“Every year we raised prices by 5-7%, but for the last two and a half years we have not been able to do this. During this time, electricity, rent and maintenance costs have risen, so raise prices,” Datta said.

The CEO said he expects growth to continue even if cinema attendance is not yet at pre-pandemic levels.

The cinema chain is also looking to create pre-pandemic levels. advertising revenue by the third quarter of fiscal year 23 as the company plans to introduce new ways to interact with audiences in theaters, Datta said.

Advertising revenue is currently 68% of pre-pandemic levels.

Previously, about 11% of the company’s revenue came from advertising, which dropped significantly during the pandemic, and PVR expects to reach that figure by the third quarter of fiscal 2023.

For the first time in history, he presented a 270-degree experiential advertisement in a movie theater. India to increase interest in brands.

“We are confident that this innovative advertising method, which is ideal for product debuts, will help brands make a lasting impression on viewers. PVR really looks forward to working with more brands and advertisers to revolutionize film advertising,” Datta added.

In the wake of the pandemic, PVR has been struggling to break the momentum of inactivity in film advertising and promotion.

“We play about 16-18 minutes of commercials. Now, within that, there are certain brands that say I really need to pop out and I have a big launch. So what can you do to make it more effective for me? So, we have done this exercise and you never imagine that the side walls of the cinema will also catch fire. This clearly means better engagement, better impact and more recall for advertisers, which is exactly what we were trying to do,” Datta said.

As part of the experimental advertising, the side walls, roof, and seats of the theater can be used for advertising with additional projectors.

PVR plans to open about 100-110 halls in 2022-2023, up from the 80-90 halls average in the year before the pandemic. This financial year, the company intends to invest Rs 400 crore, most of which will go to the renovation of the existing theatre.

PVR posted a loss of Rs 748 crore in FY 21 and Rs 488 crore in FY 22 as theaters were impacted by restrictions imposed by various state governments to contain the spread of the Covid-19 pandemic in March 2020.

Cinema attendance is 87% of pre-crisis levels, and the company plans to open seven new cities this year.