Sept qtr is off to a good start for PVR Inox

livemint.com:

KGF: Chapter 2 and RRR, which had excellent runs. For a while now, there have been doubts on whether movie consumption patterns have altered significantly, partly driven by competition from over-the-top platforms. Amid this, it helps that the September quarter has begun with a bang: Enter Mission Impossible 7 (MI7), Barbie and Oppenheimer.

Thanks to the success of these movies, and the line-up for the next few months, the outlook for FY24 suddenly seems a bit more promising than earlier envisaged. In Hollywood, the movie pipeline includes The Meg 2, Blue Beetle and Expendables 4. What’s more, the management has said, “Volatility in Hindi films’ performance has reduced, and we have seen a quarter-on-quarter improvement in the average collection of Hindi films as well, with mid-scale movies like Zara Hatke Zara Bachke and Satyaprem Ki Katha performing well at the box office." Investors are taking note.

In the past one month, shares of PVR Inox have gained by 17%. “At least, this shows if the content is good, then the audiences will go to the theatres," an analyst said, requesting anonymity. “If August and September can sustain the momentum seen in the month of July, then Q2FY24 can turn out like Q1FY23," he added.

In this backdrop, the extent of increase in admits or footfalls remains to be seen. In Q1, admits were down by 22% year-on-year to 33.9 million, but rose sequentially. Improvement here would also augur well for advertising revenues.

The company expects ad revenues to pick up in Q2 and reach fairly normal levels by Q3, which is a festive period. Besides movies, PVR Inox would also be screening India matches during the upcoming ICC Cricket World Cup. But ultimately, how occupancy pans out is paramount.