PVR Inox’s Loss Doubles Amid Bollywood Movie Flops

BENGALURU (Reuters) – PVR Inox, the largest multiplex operator in India, announced on Friday that its first-quarter loss more than doubled due to a combination of fewer big-budget Bollywood releases and underwhelming box office performance from the movies that did premiere.

The company, which emerged from a merger between PVR and Inox in early 2023, reported a consolidated net loss of 1.79 billion rupees ($21.4 million) for the quarter. This is a significant increase from the 816 million rupees loss reported during the same period last year.

According to PVR Inox, movie releases dropped by 13% this quarter. Analysts attribute this decline to India’s general elections and the Indian Premier League (IPL) cricket tournament, which led to Bollywood postponing the release of several Hindi movies between April and June.

Additionally, the films that did make it to the theaters—such as “Bade Miyan Chote Miyan,” “Chandu Champion,” and “Maidaan”—failed to perform well at the box office.

“The number of blockbusters also declined sharply this quarter, with only three films crossing the 1 billion rupee mark, compared to seven last year,” noted PVR Inox, which operates 1,754 screens across India.

This downturn negatively impacted its primary revenue streams: movie ticket sales and food and beverages.

Ticket sales, nearly half of the company’s total revenue, declined by 14.5%. Meanwhile, sales of food and beverages, making up 33% of the total revenue, fell by 6.1%.

Consequently, PVR Inox’s overall revenue dropped by nearly 9%, totalling 11.91 billion rupees.

Hollywood releases did not offer much relief either, as the industry faced a slump due to delays caused by a writers’ strike last year.

According to Karan Taurani, an analyst at Elara Capital, Hollywood content faced delays of four to eight months due to the strike. ($1 = 83.6910 Indian rupees)

(Reporting by Varun Hebbalalu in Bengaluru; Editing by Rashmi Aich)