Blockbuster Lineup Driving Urban Consumers Back To The Big Screen: PVR INOX

Consumption-driven businesses are feeling the pressure as urban market slows, and cinemas are no exception. However, a strong movie line-up this month and next raises hope for a strong finish for the current quarter ending in December, said Sanjeev Kumar Bijli, executive director of PVR INOX Ltd.

"We aren't isolated, and we're seeing a slowdown in consumption but at the same time what we have observed is that content plays a significant role in getting consumers back to the cinemas," he told NDTV Profit.

"We started off with a slow month in October with most films not doing well at the box office, but then the Diwali releases have been very promising, and we saw steady footfalls... We have been propelled by blockbusters such as Bhool Bhulaiyaa 3 and Singham Again. Looking ahead to December, we've a great line-up of movies like Pushpa 2, Mufasa: The Lion King and Baby John, so I am very confident that Q3 will close well."

The Ajay Devgn starrer Singham Again collected Rs 240.35 crore net in India, while Bhool Bhulaiyaa 3 made Rs 247.1 crore, according to estimates by Sacnilk. Both the films released on November 1.

"Typically, in a high-profile clash such as this, one of the movies takes off and the other lags behind," said Abneesh Roy, executive director, Nuvama Institutional Equities. A case in point is the clash of three Bollywood releases — Stree 2, Khel Khel Mein, and Vedaa — on Independence Day weekend this year as well as the release of Sam Bahadur and Animal in December last year. "But, this time, both the movies have done well, which is rare, and whoever wins, it will be a great outcome for the industry."

Moreover, the re-releases have consistently performed well over the past 8–9 months. The multiplex giant marketed 80 films for re-release in the first half of FY25, and this number is projected to exceed 140 by the end of the fiscal year.

On Friday, the country's largest movie exhibitor unveiled its latest innovation Movie Jockey (MJ), an AI-powered WhatsApp chatbot as it seeks to get closer to the customer's needs, to understand their preference and acquire new customers. The chatbot allows users to access personalised movie recommendations, seamless ticket bookings, as well as pre-orders of food and beverages in six languages, including Hindi, Tamil, and Telugu.

"Consumers today are more comfortable with making purchases directly from their smartphones," said Bijli. "So, WhatsApp being a highly popular platform was a natural choice for introducing MJ, that has been designed to ensure a more engaging cinema experience."

PVR INOX added about 80 screens so far this year and plans to add 40 more with a capex of Rs 120-150 crore. The new screens, a combination of metro and non-metro locations, are currently under various stages of fit-out, said Bijli.

Besides, PVR INOX is closely monitoring rental costs. As part of this strategy, the company has been constantly shutting underperforming theatres. "We have identified 80 non-performing screens, of which we have already shut 50 and the rest will be shut over a period of time this fiscal."

PVR INOX reduced its losses to Rs 11.8 crore in the September quarter, a significant improvement from the Rs 179 crore loss in the June quarter. It was, however, a significant downturn from the profit of Rs 166.3 crore in the corresponding quarter last year.

On the path to profitable growth, Bijli said: "PVR INOX achieved an EBITDA of Rs 808.7 crore in FY24. This year we don't have that kind of a visibility right now, but with people returning to cinemas, and a slight easing of our capital expenditure plans, I think the business is on a strong footing."

Meanwhile, the company is also planning to diversify beyond its core revenue generator segment. The company is all set to enter the food and beverage space and will be opening its first food court in mid-December.