PVR INOX plans to close 50 loss-making cinemas over next six months
PVR INOX, the multiplex operator, has recorded a quarterly loss of Rs 3.33 billion ($40.72 million). It is hit by one-time impairment charges and expenses related to the planned shutdowns of some cinemas.
Formed by the merger of two multiplex operators - PVR and INOX early this year, the company said that it took an accelerated depreciation charge of Rs 105.8 million on 50 loss-making cinemas it plans to shut down over the next six months.
Since the pandemic, the cinema operators in the country are struggling, when a lockdown was imposed on the people to stay at home and made streaming more popular among movie enthusiasts, prompting PVR and Inox to join forces.
In FY2024, PVR INOX plans to come up with 150-175 more screens.
It also took an impairment charge of Rs 108.2 million related to a project in a Bengaluru mall which was suspended, the company said. PVR INOX is reporting results for the first time after the completion of the merger.
PVR had reported a loss of Rs 1.05 billion a year earlier, when the two companies were separate.
"While there has been some volatility at the box office over the past few months, we are confident that this trend will settle down over the next two to three quarters," PVR INOX said.
Revenue for the quarter stood at Rs 11.43 billion, while total expenses were at Rs 13.64 billion.
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