PVR INOX Announces Closure of Loss-Making Cinema Screens, Plans to Open New Screens in FY’24

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PVR INOX Ltd, a leading multiplex operator, revealed its decision to shut down approximately 50 cinema screens over the next six months due to accelerated depreciation and poor performance. The company stated that these properties were either operating at a loss or situated in malls that had reached the end of their life cycle without any hope of revival. Consequently, PVR INOX has written off the written-down value (WDV) of assets by taking an accelerated charge of the depreciation in its books. Despite the closures, PVR INOX added a total of 168 screens during the fiscal year 2023, with PVR contributing 97 screens and INOX adding 71 screens.

In the fourth quarter of the same fiscal year, PVR added 53 screens, while INOX added 26 screens. The report further highlighted the volatility observed in the performance of Hindi movies over the past four quarters, noting that movies resonating with audiences were generating higher box office returns compared to the pre-pandemic era. Looking ahead, PVR INOX shared its screen opening outlook for the fiscal year 2024, expressing its intention to open 150-175 screens during that period. Currently, nine screens have already opened, 15 screens are awaiting commercial licenses, and 152 screens are in various stages of fitout. Despite reporting a consolidated net loss of ₹333.35 crore for the quarter ended March 2023, compared to a net loss of ₹105.49 crore in the same quarter of the previous fiscal year, PVR INOX remains optimistic about its future prospects.

PVR INOX Executive Director, Sanjeev Kumar Bijli, stated that with a combined entity operating approximately 1,670 screens across different regions, along with a strong pipeline of content in multiple languages, the company expects an increase in admissions in the coming fiscal year. Moreover, following the merger, PVR INOX aims to achieve economies of scale and revenue synergies from ticket prices, food and beverage sales, advertising, and operating costs. The company has already added around 140 screens in the current fiscal year and plans to add an additional 180 screens in the next fiscal year, as it continues to witness a return of audiences to cinemas.

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